From the course: How to Protect Business Profits in a Financial Downturn

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Limiting the downside

Limiting the downside

From the course: How to Protect Business Profits in a Financial Downturn

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Limiting the downside

- It's difficult for a business to be completely recession-proof, but one of the best things you can do in a downturn is to try to find customers that will help you limit your downside. And that means looking for those businesses or those companies that are in fields that are not as badly impacted by recessions. Now, the list is kind of short: healthcare, government, education, technology, and consumer staples. This is a small list, but if you can get clients in those areas, it might help you limit the downside impact on your company's cash flow. And that's the big goal during a recession, not necessarily to have the best year ever, but to limit the downside in order to be able to hold on until the economy recovers. Sometimes this might include creating an entirely new offering or a new part of your business. Sometimes a downturn is a good opportunity to do new things, and it's a really good opportunity to do new…

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