Besides the grocery and general merchandise industries, one industry that remained steady even during the pandemic is the home services industry. As more people spent time in their houses, people focused on home improvement and repairs. In fact, the home services industry is predicted to continue thriving and growing in the following years. However, it wouldn’t be surprising if business owners feel some uncertainty especially with experts expecting the US economy to “likely” fall into a mild recession at the end of 2022.
Although the impact of the foreseen recession wouldn’t be as bad as the Great Recession, smart business owners should always be a step ahead and start looking for ways to “recession-proof” their home services company.
In this article, we’ve listed tips to protect your business from the damages of recession and other circumstances that could ultimately damage your company.
Be Proactive
Sure, business may still be good and you still have a long list of prospects; however, this may not be the case when the economy starts to slow down. The best way to mitigate risks is to be proactive in making decisions, especially in critical times. Be quick to react, and see what changes you need to make in your business to weather a looming recession.
Ensure to have Cash on Hand
Having cash on hand is vital during a recession so you want to make sure you have an amount saved to keep your home services business floating even through tough times. Even if the influx of jobs slows down a bit, you’ll have enough money to cover your overhead and operating expenses.
Review Your Costs
Keeping a close eye on your cash flow will help if you want your business to come out of the recession in one piece. This means reviewing your project, job, and overhead costs. Take into account the increasing prices of materials and labor. Having a good understanding of your expenses, particularly how much each project costs will result in you giving better estimates and good profit margins.
Plan to Keep Work Coming In
Now is the best time to strategize how you can keep work coming in when things start to go rough. For example, you could focus on a niche or go on a different route and consider expanding your offerings so you can serve more clients.
Focus on Your Strengths
Take a step back and identify what keeps your home services business apart from other companies. Is it the quality of your workmanship? Are you able to meet deadlines and stay within the agreed budget? Are you the go-to contractor for the type of service you offer? When work starts to slow down, lean on these strengths to help you win projects even in an economic downturn.
Related: How Contractors Can Stand Out From Competitors
Take Care of Your Team
Speaking of strengths, if you want your business to survive the recession, you need the help of your best workers. Remember that certain businesses in the industry still have a skilled labor shortage, so make sure that you keep your team intact. How can you do this? Offer fair, competitive wages, provide them incentives, and continue projects coming in to keep them busy.
As a Same Day Pros contractor, you’ll also have the advantageof continuously receiving prospects who are already pre-screened by our staff.
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