We have been preparing my professional services company for recession for the last year or two. Key steps 1) carry no "real" debt, build cash reserves. 2) foc

We have been preparing my professional services company for recession for the last year or two. Key steps 1) carry no "real" debt, build cash reserves. 2) focus on profitability over growth. Typically driving growth means hiring sales/marketing in advance of the growth and spending profit to do it. Adding new services staff requires carrying about 90 days of the employee costs due to non billing the first month, and the 60-90 days until we receive cash from their first billings. Focusing on profit means raising prices, shedding overhead, getting long term contracts, driving efficiencies. 3) Focus on recession resistant industries. 4) Focus on acquiring more local businesses to reduce travel overhead required to clients. 5) no long term purchasing contracts 6) maximize credit line. Renew in advance of recession. During recessions banks kill lines of credit. As we start to get into a recession we will max out our line and then move the cash to another bank. Personally 1) Shed leveraged real estate assets, they are very hard to liquidate during a recession 2) Reduce debt usage 3) increase lines of credit 4) build 2 years of cash reserves (min of 6 months during normal times). Lots of money is made during recessions, you need ready cash to take advantage. 5) reduce spending now