No business can completely protect itself from the effects of recessions, but there are certain steps entrepreneurs can take to better prepare their businesses and try to recession-proof them. ChatGPT, the large language model and AI darling of Silicon Valley, suggests various actions that can serve as a great starting point for business owners.
The advice ChatGPT provided includes such suggestions as having an emergency fund to help it weather hard times, diversifying its revenue streams to not depend on a single product or service, preparing a budget and reducing costs when necessary, offering high-quality and friendly customer service, actively planning for recessions, and being ready to pivot and adapt.
ChatGPT’s advice is great, but if a business owner were to take it one step further, they could also store non-cash savings such as gold and real estate as a hedge against inflation. Additionally, a focus on efficiency is welcomed, yet tasks which are required for customer satisfaction and product refinement should not be rushed.
This conversation highlights how important it is for entrepreneurs to be proactive in their approach when preparing their businesses for recessions. A little bit of preparation goes a long way to ensure the company can survive a potential economic downturn.
