Tips for small business owners to withstand a recession

LAS VEGAS (KLAS) — As small business owners have caught a collective breath from the pandemic, at top of their minds is a potential recession. Despite this and inflation, many have said they are feeling confident and resilient. 

Kabbage, an American Express company, has released its latest small business recovery report. 

After surveying more than five hundred small business owners across the country in a wide variety of industries, Chief Marketing Office Brett Sussman said 80 percent of them said they could withstand a recession because of what they learned during the pandemic. 

“Small business owners are confident, they’re feeling resilient. What the pandemic did is it forced them to create a larger playbook than what they had before, bigger and better,” Sussman said 

Sussman said the pandemic forced them to re-invent their business and go back to the basics. They focused on their brand and incorporated new digital and social media channels. 

The small business recovery report also revealed small business owners raised their prices on average 21 percent over the past year and a half. One in five said they are going to have to raise prices again, as the year goes on. 

“Inflation is a real concern, and it’s coming from three areas: their suppliers are charging them more, the raw materials costs are going up, and supply chains are snarled,” Sussman added, “They expect that to continue for much of the year.” 

His tips for any small business owner looking to survive a recession were to be creative and innovative. 

“Get online. Expand who you are offering your product to. It may move you from local to regional or nationwide. Use digital and test into social media platforms.” 

Some other tips are to offer gift cards from your store. Doing so to online customers can be a big boost. 

If you’re a small business owner who can sub-divide your space, take in a second tenant with a supplementary business to reduce your rental and overhead costs.    

Business Tips