Coach Frank Bonnin

As anyone who has been watching the news recently can tell, we are looking at the potential (or pretty much probable) recession in the future. Your first inclination may be fear and worry. However, there are things you can do to make your business recession proof. There is no need to panic.   

Yes, we are dealing with inflation. We are also dealing with several years in a row of continuous business improvement. Continuous improvement in the GDP and in just about every other marker of business.  So, when we say recession right now, what we’re really talking about is returning to the more normal economy.  Essentially more like the economy we had before it went gangbusters.

Along with inflation we have rising interest rates. What you must remember, though, is that for the last 10 years interest rates have been at all-time historic lows. These increased interest rates, they’re not huge, they’re not scary. They are a return to what it was like 10 to 15 years ago. Which is historically close to normal related to the economy.

So, yes, probable recession coming. However, not necessarily something to be scared of. Definitely don’t run for the hills but be paying attention to it. You should be thinking about things to guard and protect your business and to make your business recession proof. 

In a recession, there are still consumers who are out there spending. Even in the Great Depression of the 1930s, there were people out there spending. So where were they spending their money? They were spending their money where it gave them the best value.

One key to make your business recession proof is to identify the value you provide and communicating that value to your customers. What is unique about your business? What do they get from you they cannot get elsewhere? Make sure they know that they are buying something of value, not just a commodity. Make sure they know they’re buying something that will solve a problem for them. Not just a tool from them to put in their tool shed.

I like the saying, “A hardware store that realizes they’re selling holes in walls is far better equipped to sell a drill than a hardware store that is just sell drills.” The hole in the wall is the value that they are bringing. The tool itself is just a mechanism. Identify the value for your business and then consistently communicate that to your customers. And customers will continue to spend money with you.

How do you identify and communicate the value your business brings to its customers and clients?  (Which will help make your business recession proof.) By developing a Unique Selling Proposition and a Guarantee!

We coach all of our clients on developing their own Unique Selling Proposition. A successful USP should be:

1. Truly unique
2. Exciting to your target market
3. Something that will get people talking
4. Something that can’t be easily copied, or if it can be copied, it will be an obvious rip-off on the part of the offending business

We also coach our clients to develop their own Guarantee. A successful and powerful Guarantee should be:

1. Specific
2. Something that addresses the main frustrations and fears of the customers when dealing with your industry
3. Complete – it should say, “either this happens, or we do this…”
4. Impressive – sometimes a tall order so it can help to get an outsider’s perspective

For more information and to learn the specifics, download our guide, “The 7 Steps to Creating Powerful USP’s and Guarantees” here:  https://wasatch.actioncoach.com/download-instant-usp-guarantee

Our coaches can help you make your business recession proof.  If you are interested in a complimentary 1-hour coaching strategy session, fill out this form.

For some additional advice on business challenges, check out this video on the Point of Power.

Most of us can probably define the word diversity, but do we know what it truly means to implement it in our companies, classrooms and relationships? Business diversity has a lot of big talk around it and in the past, some companies have gotten major bonuses for having people of color as employees. But is this where the line of diversity ends? Including diversity in your business can look like different talents, ages, religions, education, colors, genders, workflow and more. 

Here are a few things you should consider when trying to make your company more diverse and what it can truly do for you and your employees. 

Embrace Different Perspectives

Diversity doesn’t just apply to color or race. Diversity is a concept of ideas, backgrounds and values. Including people in your company who do not fit the cookie cutter shape of what you think your business should look like, can actually improve the image of your company.

Including diversity involves the process of celebrating differences. Encouraging your employees to share ideas, go outside of their comfort zone and learn from each other is including diversity in your company. 

If you have a variety of different ages in your business, one employee may know a lot about social media, while another knows how to sell. Working together and teaching each other helps improve morale in the company and can help boost sales. 

Diversity itself does not automatically produce sales, but reshaping the power structure and the voices that get heard the most can impact your company in a big way.

Learn From Other Successful Companies

If you are looking for examples on how your company could improve diversity, there are some major companies that have learned to incorporate diversity in their team. These companies that are highly ranked for being diverse include Sodexo, MasterCard, Johnson and Johnson and Lenovo. 

Sodexo places the highest priority on gender equality and it has paid off. The 2020 Bloomberg Gender Equality Index included Sodexo that shows the great financial performance in companies that are committed to gender equality. Women make up 37% of Sodexo’s executive committee and 60% of its board or directors. 

Johnson and Johnson aims “to maximize the global power of diversity and inclusion to drive superior business results and sustainable competitive advantage.” The company makes a point to incorporate diverse voices throughout their company and concept meetings. They are also a founding member of the Unstereotype Alliance which works to tackle gender imbalance in advertising. 

At WasatchACTION Coach, we believe that one of the keys to a winning team is involvement and inclusion. If your team is allowed to contribute something to the team and the company, they are more likely to feel like they belong. There are more tips to a winning team, but making people feel seen and heard can help propel your business forward. 

Diversity Dimensions

There are many aspects and areas of diversity. Research has shown that companies that implement more diverse practices experience more sales, more customer retention and higher profits. There are dimensions to diversity that you should keep in mind when running your business. 

Internal diversity is what a person is born with and cannot change such as race, ethnicity and age.

External diversity includes things that people are not born with but can be heavily controlled by the individual, such as interests, education, appearance or citizenship.

Organizational diversity is related to the place of employment and includes job function, work location and seniority status.

World view diversity relates to anything that we experience or observe in the world around us. This can be pop culture, peer reaction, politics or world events. 

The Risks Of A Non-Diverse Workforce

Harvard Business Review talks about the limited capacity of innovation and continuous improvement unless all employees are fully participating. But if a company is only focused on the financial gain of diversity, traditionally underrepresented employees will see that they are only worth hiring because they increase the money in the higher ups pockets.

Putting off including diversity can unintentionally create a hostile environment and contribute to low employee retention. When employees feel like they do not fit in, they are not likely to stick around. This hurts your business because you are constantly pivoting to fill those openings and your other employees may not rate your business well either. 

The World Economic Forum said “Women will ask more questions without the concern of the “façade of knowledge” and take fewer risks in their portfolios leading to few highs and lows in returns.” Women are also less likely to speak up while men over-state their confidence. Including women can help more females to speak up without being overpowered. 

There may also be class action suits that come to you if you do not include diversity in your business. Knowing of diversity problems and doing nothing to improve them can cause big legal problems for you. Research has shown that businesses with mixed gender boards have fewer instances of fraud, corruption and bribery. 

WasatchACTION Coach

Our company wants to help improve all areas of your business. Not only do we provide coaching for all businesses but our blog is full of quick tips and things you can do on a daily basis to improve your business. 

We have found that most business owners already know what their business needs in order to achieve the success they dream of. What they lack is the focus or correct tools to obtain visible results. A common misconception is that you only need a business coach in times of crisis, but getting ahead and working on your goals with a coach can help hold you accountable and avoid crisis. 

Our coaches help you to find balance in your professional and personal life while helping to contribute to the community you are a part of. Our coaches are action oriented. Not only will we give you a plan, you will take action and make real progress to your goals.
Our team has also uploaded coaching videos to our site so that we can walk you through ideas such as team building, time management, what to expect from business coaching and more. If you feel you need more and crave to improve your business, contact us or visit our office in Kaysville, UT today!