One of your responsibilities as a business owner is to prepare your business to survive when circumstances outside of your control arise. With a global recession forecast, it’s important you prepare your business now to weather the storm.
Although the news may paint a scary picture for small businesses, there are strategies you can put in place now to set your business up to survive and even thrive.
Remember – the economy is always changing and recessions are part of a normal economic cycle. The economy grows, the economy slows down, recessions happen.
By accepting this as a normal part of your business journey we can remove the fear and instead focus on preparing for it. You are resilient, you can navigate this with a bit of planning and preparation by following these four steps to prepare your yoga business for the 2023 recession.
Step 1: Make friends with your finances
The first step in preparing your business is to get really clear on your money situation. Maybe you have been avoiding your business finances or just letting them tick along but now is the time to get intimate with them!
You need to know your numbers, you cannot plan for a recession if you don’t know exactly how your business is performing financially.
You need to know your:
- Cash flow
- Profit margin
A study done by a US bank that reports 82% of businesses fail because of cash flow.
One way to get clear on this is to use a budget and forecasting spreadsheet to forward plan your launches and predict profit. This is something that all of our students in Yogipreneur Launchpad get access to.
If you have multiple offerings, you need to know which ones are generating the most profit and therefore where you are making the most profit in your business. Some offers might generate little profit but take a lot of your time and energy. This information is going to empower you to make informed decisions going into a recession on where to focus your attention in your business.
Even if you don’t yet have offers in place, planning and understanding all of the associated expenses, how much of your time they will take and having a full understanding of the figures will help you to identify the viability of your offer, how many students you want to bring in to it and whether the figures make sense for your business at this time.
How to prepare for a worst-case scenario
Preparing for a recession really means preparing for the worst-case scenario. Not all businesses struggle in a recession but being prepared will set you up for success.
Think about how you would handle worst-case scenarios in your existing business. For example:
- If students cancel their memberships with you
- If numbers drop in your regular classes
- If your retreat doesn’t sell out.
If possible, setting aside extra money now to create a reserve will provide a fall back in these scenarios. A buffer of three to six months of savings is the ideal amount to have set aside.
Don’t be afraid to run the numbers and plan what you will do if the worst happens. You cannot control what your students do but you can be prepared.
Step 2: Invest in support
This may feel contradictory at a time when you are setting aside reserves and keeping close tabs on your expenses but having support that will help you to move through the challenges you encounter.
This is not the time to reduce any support you already have in place but it might be the time to add support if you don’t already have it.
What support should you add to your yoga business?
Investing in a Virtual Assistant (VA)
If you already have a VA, now is not the time to stop their support. If you don’t have a VA, now is a good time to get one.
Freeing up your time that is spent on https://digitalyogaacademy.com/wp-content/uploads/2023/05/5-money-making-ideas-for-consistent-income-in-your-yoga-business-for-2023-4-1-2-3.jpg tasks allows you to focus on the strategy, offers and actually working with students. The pieces that move the needle forward in your business and generate income.
For example, what is a better use of your time:
- Scheduling your social media postsor
- Working on an evergreen funnel?
It might feel risky to invest in support right now but you are the one who can map out your offers and serve your students. Handing over https://digitalyogaacademy.com/wp-content/uploads/2023/05/5-money-making-ideas-for-consistent-income-in-your-yoga-business-for-2023-4-1-2-3.jpg tasks that somebody else could do for you will allow you the time to do this.
Investing in a coach or mentor
Another good business investment at this time is in a coach or mentor to help you navigate difficult times in your business. Everyone needs support, everyone has knowledge gaps and preparing your business for a recession it’s important to be honest with yourself about where your strengths are and where you need support in your business.
Having a place where you can feel supported, work through your concerns and get help with your decisions is so valuable for your business. Being a business owner can feel lonely, especially when we have to make tricky decisions so having support in place can help you through any challenges you face and cut the time it takes you to reach your goals.
For more on building a team to support you: Building an epic team to support your six-figure yoga biz.
Step 3: Be proactive with your marketing
The business you have right now is the direct result of the work you put in 6 months ago. It takes time to see results so it’s vital you prepare for 2023 by preparing a strategy on how you are going to market your business.
If you want your business to succeed in 2023, you need to be taking action now.
- Being visible online
- Actively growing your email list
- Building your network and creating opportunities to collaborate
- Nurturing the relationships with your community
This last part, nurturing the relationship is so important. Your existing students are most likely to buy from you again, you need to nurture the relationship with them and those who have already opted into your community.
It can become considerably harder to attract new people into your community during a recession so retaining your existing student base is vital for your business to survive.
Need help with marketing your yoga business?
It’s essential you know how to market yourself in order to make sales in your business. Our 16-week program Yogipreneur Launchpad teaches all you need to know to become confident marketing your offer.
Step 4: Put a product strategy in place
It’s time to start creating offers that are more than just a drop in class, these are not going to sustain you through a recession and are easy for students to drop in a bid to save money.
If you only have one way of making money in your business you are particularly vulnerable in a recession. Having a hierarchy of offers and online offers will open up opportunities and the potential for evergreen revenue streams.
It’s natural that spending habits will shift during a recession, as a business owner you need to be willing to shift with your community’s changing needs and priorities.
For example: If students decide they do not want to travel for yoga and will practice at home, having an online offer will help you retain them as students and open up opportunities to bring new people into your classes.
Having online offers such as an online membership or workshops gives you the opportunity to have scalable offers where you are not restricted to a particular geographic location or number of mats you can fit in the studio. People still spend money in recessions, your offer could be the solution they need to manage the extra stress and anxiety. Your yoga offer will be needed more than ever and taking it online will help you to reach more of the students in need.
Online education is here to stay – the question is do you want to be a part of it?
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Founder of Digital Yoga Academy, educator and coach for Yogipreneuers who want to step out of their limitations and into confidence, profit, and success!
I’ve taught thousands of yoga teachers to rise up and thrive in the online space and to build profitable and sustainable yoga businesses.
I’m guessing you’re here because of your entrepreneurial spirit and desire for more freedom, time, abundance and joy!