As a Business Growth Consultant, I am often asked the following question – How long will this recession last?

Maybe you have been asking yourself the same question.

No one knows exactly, how long this recession will last.

However, as I researched the recessions we have experienced in the UK since 1980 I noticed that they all had one thing in common.

Having worked through three recessions I know the pain, frustration, loss and so much more that a recession can bring.

It is important that we know about this so that we are not caught out. We need to be aware of it because it can prepare us accordingly as we enter another recession.

First let us look at each of them, to see what they had in common.

1980 Recession.

Start date and GDP reduction.

1980 Q1: -1.7%

1980 Q2: -2%

1980 Q3: -0.2%

1980 Q4 -1%

1981 Q1: -0.3%

Now let us look at the figures for the next recession.

1990 Recession.

Start date and GDP reduction.

1990 Q3: -1.1%

1990 Q4: -0.4%

1991 Q1: -0.3%

1991 Q2 -0.2%

1991 Q3: -0.3%

Now let us look at the figures for the next recession.

2009 Recession.

2008 Q2: -0.2%

2008 Q3: -1.7%

2008 Q4: -2.2%

2009 Q1: -1.8%

2009 Q2: -0.3%

As we know a recession is recognised by two quarters of negative growth. As you can see from the about figures is that the one thing that they all had in common was that they all lasted for five quarters – 15 months

So, what can we learn from this as we enter another recession?

If history is telling us something it is to prepare for the long haul.

As a Business Growth Consultant, I am letting all my clients know of my findings, so that they prepare accordingly.

Do not think that this will be over within 6-9 months. Strategically plan, review your existing business plan, make the necessary reductions on outgoings but also innovate, innovate, and innovate.

Having worked through 3 recessions before I know that strategic planning, innovation and upgrading your customer centric experience is paramount to successfully coming through a recession.

Unfortunately, there will always be casualties with a recession it is not easy at all. I know this.

It’s important to lead the changes that need to happen. To read more about click the following link – https://keepthinkingbig.com/leading-effective-change-in-challenging-times/

Questions to consider:

  • What does your strategic recession plan look like? (SRP)
  • What bold steps do you need to take now to secure the future of your company?
  • What could stop you in taking those steps?
  • Where is your business haemorrhaging the most when it comes to cashflow?
  • How will you prepare for the next 15 months?
  • Where and how will you innovate?
  • How will you look to develop your customer centric experience?
  • How will you look to maintain a healthy profit margin from a lower number of customers?

These and other strategic questions are part of the process I use with my clients as I help them with their future success.

Do not forget I am only highlighting here the technical period of the recessions (5 quarters) not the impact that was felt thereafter.

Now is such an important time to review your strategic business plan.

Here is a link to a paper I prepared on ‘What to consider when developing a strategic business plan’ https://keepthinkingbig.com/white-papers/business-strategy-whitepaper/

Many others have found it helpful – and I hope you will find it useful as you build your – Strategic Recession Plan. (SRP)