Even when times are good, you need to be getting ready for when they are not. Prepare for an economic downturn by implementing good business practices to help ensure your farrier business’s survival. Here are few of the most important ideas to help recession-proof your shoeing practice.

1. Make sure to manage your cash flow. Do it all the time. Put money aside in a savings account to protect yourself in the case of an emergency.

2. See what you can do to reduce inventory costs without sacrificing quality of goods or inconveniencing your customers. With so many farrier supply stores around, you may be able to save money on items you don’t regularly use. Yes, buying bulk may bring the cost per item down, but if the bulk box of shoes takes a year to use up, then it can cost you precious cash flow that could be used for more important bills. You can also consolidate purchases with other farriers or look into co-op purchasing.

3. Review how a recession impacts your clients. Prepare for a situation in which your clients aren’t going to have you service their horses as often. Somebody’s always making money, even in a recession, so if you can find out who those people are and offer them the right service, you can make money along with them. A recession is also the time to take customer service to higher levels. Get in touch and stay in touch with your best clients. Take nothing for granted. Establish your service, not on competitive pricing, but on exceptional service and attitude. Clients value and desire this, no matter the economic environment. To be successful, you will need to change your attitude about yourself and towards your business.

4. Take steps to reduce your debt. The less you have to pay out regularly, the less painful it will be in economic slowdowns.

5. Use the Internet more effectively. Go online to communicate with clients, promote yourself, sell products and advertise your services. Selling handmade items on eBay can bring in considerable extra income.

6. Take the opportunity to step back, rethink and review all sectors of your farrier business. Consider selling a new product or launching a new service. Diversify products you carry, services you provide and your number of clients so you don’t have too many eggs in one basket. Experiment with new ideas, new types of products and new ways to do your work.

7. Get together with other farriers for “think-tank” discussions. Sharing struggles and ideas can help spark new ideas and ways to run your business. Become passionate about your work, so it will reflect in your business. Understand your strengths and weaknesses in order to know how to promote yourself. Remember, your farrier business is a reflection of yourself. Network with other equine professionals for new ideas and referral opportunities.

8. Obtain and keep better clients by providing service with a perceived value of more than what you charge. Fire “Demon Clients” who focus only on prices when measuring your service. These types of clients can suck the life and profits out of your business. Learn how to hire, keep and reward better clients. Look at your database and rate clients by the percent of profit margin. Reduce or eliminate clients who provide the lowest profitability. Share your knowledge of horses with your clients and you will be surprised at the better quality of clients you obtain and keep.

9. Avoid becoming dependent on a small number of clients. The easiest way to give away financial control of any company is to grow your business on only a small group of customers. If you service four large barns and lose one of these accounts, you instantly lose 25% of your business.

10. Accept credit cards so you have another avenue of getting paid. There are many credit card service companies out there from occasional use to bulk use. The quicker that money is collected for services rendered, the quicker it can be saved or spent on bills. DO NOT bill as billing increases your overhead. Billing increases your risk of losing income and does not allow you to use money you’ve already earned. It can take food out of the mouths of your family members. You train your clients when it comes to money matters. Allow billing and you train them to pay you later. Expect payment upon completion of service and you train them to have checks, cash or credit cards waiting for you.