The term “recession proof” refers to industries and companies that are well insulated from the negative impact of an economic downturn. Traditionally, businesses that are least impacted by a recession are those dealing in essential services. Health care, grocery stores, senior care, maintenance – critical services that you just can’t do away with when trimming the fat.
There are plenty of steps that any business can take to help guard against recession, and one of the key ones is the concept of pay as you go. In other words, tying your business expenses to matching sales. If your business needs supplies, you pay for them from the sales generated within the same period the supplies last.
In a pay as you go model, lower overall expenses means fewer required sales to stay in the black. That’s why Schooley Mitchell is recession proof: Our services are just as relevant – if not more so – during a recession as they are in times of plenty.
Schooley Mitchell reduces business expenses for our clients, and there is no fee to do so. There is only a share of the savings. When business is good, our clients are focused on sales, growth, expansion – and expansion isn’t cheap. We help them optimize their expenses so their money can go towards building their business instead of in the pockets of their vendors.
When business is tough, they’re focused on weathering the storm. The most critical tenet in the recession proofing handbook is to carefully manage your expenses. After all, expenses come off the bottom line, which means a dollar saved is worth more than a dollar earned.
There are many cost-cutting initiatives that have negative impacts on the sustainability and growth of an organization – reducing product development, laying off staff or increasing prices of goods and services can be detrimental to the long-term health of a company. However, by reducing essential business service expenses, businesses are able to increase their profits without affecting the revenue-generating aspects of their business.
In other words, Schooley Mitchell’s services are critical during recession because they give businesses room to breathe. They save jobs, keep prices reasonable, and help maintain continuity. Schooley Mitchell is 100 percent elastic to economic conditions. Businesses will always want to reduce their expenses and save time dealing directly with their vendors. Schooley Mitchell also provides critical decision-making knowledge directly to our clients, and the security that comes along with knowing an independent business with marketplace clout is on their side of the table.