Gregg M. Schoppman
There are two schools of thought relative to recession preparation. First, it all comes down to preparation. Compare it to a storm targeting a specific area, like a hurricane making its way across the Atlantic. In most cases, there is a runway that allows people in the target zone to prepare themselves and their property. The same case holds true for recession-proofing a business. How strong are your collections? What does your backlog look like? How deep is your team? What does your cost structure look like? From a short-term perspective, there are hygienic elements that business leaders should be doing as ordinary course of business, and if a business wasn’t doing these before the storm hit, there are probably more important concerns than a recession.
Secondly, recessions are not always catastrophic events. In fact, not all sectors are affected the same, and a well-diversified business is better positioned to play offense in a recessionary market. Talent acquisition, market share gains, business acquisition, etc. are all areas that savvy businesses see as opportunities. To do this, the business cannot be hunkered down, and it is certainly well positioned long before the market shifts. Put another way, the business isn’t scrambling to be sure its balance sheet is strong because it knows it has the ‘dry powder’ to be a market leader in a down market.
One way to future-proof your business is to consider utilizing cloud-based automation solutions for your back-office processes and operations. Digital transformation with cloud-based automation software allows accessibility from wherever you are, security and traceability for mitigating risks, and time and money savings to offset your operational costs.
Even during a recession, automated processes — like in the accounts payable and finance functions of your business — are less costly than manual processes. With highly automated and digitized back-office processes, you can eliminate manual data entry, increase accuracy while reducing errors, and save time, freeing your staff for more value-added tasks.
A key feature of cloud-based automation, specifically in your finance functions, is the ability to have real-time access to up-to-date and accurate data to make necessary financial decisions for your organization when you need it. Is it time to find a new vendor? Do you need to increase your prices? Make the right decision for your business backed by real statistics and analytics generated with cloud-based automation.