Preparing your association for a recession can be downright intimidating. However, it’s critical to start your preparations early and determine how you can minimize the impact of an economic downturn on your association’s finances. But, where do you start?
Your gut reaction may be to jump in and make sweeping cuts across your association’s budget, but this can ultimately do more harm than good. Though it may seem counter-intuitive, sometimes it’s better to keep budgets intact. Use these three questions to help you decide what to keep and what to cut from your association budgets.
What offerings are essential?
An economic downturn is a time to get back to basics. Return to your association’s core values and determine what it is members really look to you to provide. Which offerings are crucial to achieve your association’s mission and which can be put on the backburner? Those core offerings you identify should remain intact even during hard times.
Where do you see the most return on investment (ROI)?
What tried and true activities, programs, and services have worked well for your association in the past? It may be prudent to allocate more of your budget to improve those high value areas and cut programs and services that aren’t as profitable. Resist the temptation to keep legacy programs that may have outlived their usefulness.
What will help you grow?
Marketing budgets are often the first to go when it comes time for budget cuts. However, during a recession it’s smarter to keep your marketing budget intact and enhance your efforts to generate awareness and attract more members. Instead of cutting the budget, make those marketing dollars stretch farther and develop a strategy that is targeted and effective.
Don’t let your association suffer.
Get more tips and insights on the necessary steps to ensure your association is recession-ready. Download our free recession planning guide and learn how to set your association up for success even during an economic downturn.