3 steps for business owners to become recession proof

“Rock the Recession” author Jonathan Slain joined FOX Business to discuss the steps business owners can take to survive during an economic downturn.

The key to thriving during a recession is saving when times are good, he told FOX Business' Maria Bartiromo.

Slain said there are different types of recessions: One is when the entire economy experiences a decline— such as the Great Recession. The other is “non-economic recessions,” where clients or employees leave.

The first step, he said, is to gauge where the company stands.

“You benchmark where you’re at, versus the rest of companies, versus the industry,” he explained.

The next step, he said, is to make changes to your life where needed.

“Make sure that you’re tuning up your business [and] tuning up your personal life,” he said.

GET FOX BUSINESS ON THE GO BY CLICKING HERE

The last step, he said, is to “pounce.”

In this step, when the recession has rolled around, a company will be able to purchase assets, other companies, and acquire new talent when prices have slumped in the downturn, he explained.

Slain also said the recession could present an opportunity for businesses to bring in new talent when employees are “more malleable.” He suggested that companies cut 10 percent of their expenses and begin saving for a war chest in case a recession hits.