We’ve heard it from every angle- economic times may be a little tougher in the coming months and we should “prepare” for what’s to come. As entrepreneurs it can be daunting to imagine how we’ll operate amongst the unknowns of a changing economic climate, so dive into these key points to help you remain resilient in the days to come.

Pause- this is not financial advice. We always recommend consulting a financial expert to determine the best financial strategy for your business.

Decrease Your Burn Rate & Increase Runway

The obvious action during slowing economic times is to simply stop spending- but it can be more complex than that when we look at our business holistically.

First, let’s calculate your Burn Rate for a specific period of time, in this example, we’ll use Q2.

(Starting Cash – Ending Cash) / Number of Months = Monthly Burn Rate.

Ex: ($20,000 – $8000)/3 Months = $4000 Monthly Burn Rate for Q2

Next, calculate your Cash Runway- the number of months your cash will last if the current burn rate stays the same

(Current Cash / Monthly Burn Rate) = Cash Runway

Ex: ($15000/$4000) = 3.75 Month Cash Runway

So we’ve determined that, in this example, the business’s cash would last a bit less than 4 months. Calculate this for your own business and depending on your comfort level with the results, make adjustments across the board.

When looking to decrease that burn rate, consider creative tactics that don’t feel like a complete pivot for you and your team. Look at your actual spending in marketing and operations, finding the areas where your $ investment just isn’t seeing a return. Make thoughtful changes and pull back where necessary so that the money you are spending is working harder for you.

Consider Your Non-Monetary Spending

It’s easy to look at the dollars out and end up hyper-focusing on just scaling back there, but it’s also important to consider our energy, time, and human output in order to keep our businesses thriving in a down market.

Go deeper in your relationship with your team and contractors to ensure everyone is aligned with their mission and can see the path through this economic period. Ask for their input on projects, understand where your perspectives differ, and nurture the human behind the employee to ensure you’re fostering healthy team dynamics so everyone who touches your biz is excited to pour into it even more.

Be transparent with your team to remove any fear-based thinking but also to motivate them to continue contributing their best across the board. If everyone on your team comes to the table with an entrepreneurial “get it done” mindset, you’ll be in a much better place to continue leading through these ups and downs.

Additionally, take inventory of how YOU are spending time. Are you spending time in the thick of a project that’s consuming the majority of your days and stopping you from moving the needle elsewhere in your business? Then it’s a sign that some delegation and outsourcing may be in order- whether that means allowing a team member to own a task or handing it off to an outside contractor.

Know Your Buyer

This goes without saying- you need to know who your ideal customer is. But during a widely felt economic change, it’s important to really understand what your ideal client is going through to properly calibrate your own business practices. Update your existing customer avatar by deep-diving into your ICA right now- look to understand what they’re going through and what might impact their purchasing decisions going forward.

For example, if your ideal client may be in an industry that actually thrives in most economic climates so they will continue to purchase with the same motivations as they always have. However, if your ideal customer will likely feel the impact of the changing economy, it’s a great idea to figure out how you can still serve them through their current experience. Your ability to know your buyer, their situation, and their motivation through any economic climate is your business’s key to continuing to thrive.

Get Creative to Expand Your Offers

You might be in a perfect spot with your offer suite, it covers every stage of your client’s journey and has the sweet balance of independent study options paired with more intimate 1:1 offers. However, with changes expected in our economy, we may see a shift in how our ideal customer wants to purchase (we’ll talk about this in more detail below). To be a bit reactive here, it’s a great idea to explore additional offers to fill in your suite. Consider lower ticket or low commitment options that still feel like a great value at a reduced price.

This is a great way to serve those who may not be in the position to purchase your main offers right now but will be in a position to invest more in the future. Think of an enticing one-off offer under $100- like a downloadable resource taken from your premier offer, a 30-minute mini-consult with you, or a month-to-month small group support program.

On that topic, brainstorm new ways to present your genius to the masses. You may be secure in your style of offer- whether that be self-study courses or 1:1 sessions- but with changes coming to our buyer’s behavior, it’s a great idea to look for new ways to get your value into an offer.

Consider offer styles that you’ve never sold before, both to excite your existing audience and attract those who prefer one of these product styles. Things like one-off live workshops or events, short-term group programs, or even text-based support can shake up your current offers and create the cash infusion opportunity you’re looking for.

Know That You’ll Weather the Storm

Let’s be honest here, this is not the first and will not be the last shift in our economic climate. As online entrepreneurs, we need to be prepared to operate through rain or shine and keep our businesses thriving by having a solid foundation of values and systems. It’s important that we don’t make end-of-the-world decisions just because of a down month or down quarter. Most of us in the space have lived through this before and can continue to sustain a successful business if we lean into a thoughtful set of plans.

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Remember, we don’t have to wait for the world to change just to create change in our business. You can utilize these tips in any economic climate, at any point in your biz, and create simple tweaks that have a big impact. Want to learn more about how to revamp your business’s infrastructure to beat your revenue goals? Check out Business Expansion Blueprint for all things growth and sustainable profit!