Recession-Proof Your Business to Succeed in Economic Downturns
The Scope Weekly talked with Lorenzo Bates, the entrepreneur, and owner of 360clean, about his business strategies during an economic downturn.
Economic experts and financial advisors are predicting a recession in the United States will be long and ugly throughout 2023. More than ever, it’s essential for businesses to fend off rising inflation and thrive with recession-proof companies,” said entrepreneur Lorenzo Bates to The Scope Weekly.
(Scope Weekly) Why is it essential to have a recession-proof business?
(Lorenzo Bates) “We see many decisions and factors out of our control that can cause a recession and even a full-blown depression in the United States. With unstable economic conditions, ensuring your business is as recession-proof as possible makes sense. I have taken steps to ensure my business is as recession-proof as possible. As a result, I don’t have the same worries that many other types of businesses encounter and suffer through during times of uncertainty.”
Lorenzo Bates, Recipient of the 2020 Franchise of the Year, and 360Clean CEO Barry Bodiford
What is your business, and did you choose it because it was recession-proof?
“I own a 360clean franchise, a commercial cleaning business that provides health-focused cleaning to all commercial buildings and offices. I was impressed that 360clean began its franchise expansion during a recession in 2008 and managed to thrive and expand during difficult times. This proved that the industry was recession-proof, and I was encouraged to start my franchise.”
Is the commercial cleaning industry recession-proof?
“The commercial cleaning industry has proven to be consistently recession-proof for the last several decades. At the same time, our experience at 360clean in the commercial cleaning industry can also be “pandemic-proof,” as we ultimately saw an increase in sales during the years of COVID. More businesses are concerned about employees being afraid to return to work, so my job is to explain the difference between cleaning and disinfecting. You are removing dirt and dust visible to the naked eye by merely cleaning. My business goes further by disinfecting what lurks beneath the surface that can’t be seen, such as germs, bacteria, and viruses. Some cleaning services dust, vacuum, and take out the trash. At 360clean, we concentrate on disinfecting all the common touch points in an office or building that harbor germs, such as light switches, elevator buttons, phones, and more.”
Describe the security or other advantages associated with a recession-proof business.
“Of course, there are fixed expenses when running a business. It’s hard to create budgets during economic downturns if a business is not recession-proof. When the economy begins to reach different stages of a recession, no one truly knows where the bottom will be or when it will occur. There is an overall feeling of peace and control when the business is recession-proof because you don’t have to watch the headlines and the economic downturns and worry you will not survive a recession. It’s a secure feeling not to worry about being able to provide for your family.”
What advice would you give other prospective entrepreneurs looking for recession-proof businesses?
“I feel there is another major factor that should be considered. My 360clean business income is generated from recurring monthly contracts that make up 90% of my business income. Owning a business with recurring revenue from contracts is a great advantage, especially if there’s a chance of a recession. I feel it’s important for prospective entrepreneurs to realize that when you have recurring revenue in your business, you are not wasting valuable time looking for new customers every month to generate the previous month’s income.”
Information and photos: Lorenzo Bates. http://lorenzobates.360clean.com/