If you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!
Businesses that have taken a hit from the recession and want to survive may have to consider changes, depending on the type of business, the changes may be relatively simple or drastic. The following list provides a few common sense items that should be considered:
- Increase efficiency - fewer meetings, more computerization and less time off may be the answer to some profitability problems.
- Income and payments - need to be moved forward, not backward during a recession. If you can change your policy and demand earlier payment for goods and services you could improve you financial situation.
- Reduce expenses – there are lots of ways to cut the cost of operations from giving fewer perks to using off-brand ink in your printers. When things slow its important to everything that you can to keep your numbers in balance.
- Downsizing staff - when times are tight you have to keep staff expenses down, and that may mean that the managers or owners actually work. It’s nice to
- Downsizing office - you can usually survive in your business if the expenses become small enough. With the exception of staff, office space is the largest expense for many business, and negotiating a rent reduction, moving to a smaller space or going virtual may be something that will get you through. If you don’t need the space that you are in, try to make an adjustment rather that paying dearly for it.
- Restrict travel - its another relatively high cost that is often not necessary for business survival.
- Borrowing less - is common sense. Since many business already can’t borrow, this is a no brainer. With the government ramping up the availability of dollars, however it will be difficult to pass on a loan in the future, but it makes more sense to pass on the money if you can.
- Bankruptcy - may be your last option. A Chapter 13 reorganization could give you a chance to pull your struggling business through the bad times. I have heard that all the bankruptcy Trustee has to hear from you is that you were in a hard hit industry, like real estate, and there is not much more that you have to explain.
For some it’s all about getting through the slow times to the other side.
Popularity: 24% [?]
This is good advice that can be applied to self-employed people working from home as well. Also, if people working for a company can work from home in a “virtual” office, they can save on the travel expenses – In some cases, they may be able to give up a vehicle.
Great! You know,of all the common sense items that you mentioned, the second one is the one that really caught my attention. “Income and payments need to be moved forward not backward.”
I also liked the idea of moving forward instead of backward, when it comes to business that is. If you we’re in a fight and you want to win, obviously retreat isn’t the best option but to fight on.
Hello! about the part when you downsize your office, I just like to add something. I actually considered this &.. Fortunately, the idea really helped me in my business. I just want to share that besides considering this, you should also think if appearance and largeness of your office would matter to your customers.
I actually agreed about what he said when downsizing your office. I tried the idea and unfortunately, it didn’t turn out well. I realized some business really needs a very catchy office and downsizing isn’t always that great.
I think we all realize that these are somewhat simplistic solutions that may help some, but each business has its own special considerations. You just can’t cut back or downsize if its going to hurt your valued employees or self-destruct your business.
Yeah admin… Good thing you posted something like this… I really hope people would realize this and would really think about their business since it’s not just for them but for the whole community too.
Well, its great reading something like this. Makes me inspired actually specially when you said we should move the business forward not backward. Can’t do in some business though. Like what you also said we have special considerations in our own respective businesses. If you have to shut down the business, you really must shut it down to prevent further damage to the company.
Simple solutions but very effective. I guess its time for us to move forward.
This is now the reality that everyone must have accept it and learn to find things that they really need to have change, taking progress, don’t be afraid of choosing big steps and find the will to the life that they really need and have. We must do something to survive as immediately as possible.
These are great solutions or suggestions for changing the lifestyle that we have for us to adopt to global crisis. It is very hard and not that easy but we must strive best and improve the things that we need.
Regarding payments and income, the next while may be even more challenging if inflation rises to the level of hyperinflation, as some are predicting.
Even in better times, there were financial investments that may not have even kept up with the rate of inflation.
All the points and tips above are very important. I agree that the office space is the biggest expense in business. Our lifestyle has something to do with it also.
I’m glad I’ve read those information. Some company seems to ignore or missed out some of these common tips. Well then, for me, whether you have a big business or a small one, one important thing to consider as well is the harmonious relationship between the employer, employee and the clients. Do you agree?
I agree with you Bethoven, harmonious relationship is very important. Anyway, these tips are basic but always helpful for those who have businesses. The economic crisis is really a challenge but there are ways to survive. Be determined and optimistic. Every problem has solution, right?
I am glad that I’ve read these information also. These would be helpful to all types of businesses, right? It is just like a simple reminder. I agree with Krisskross, these are only basic tips but it would contribute to the survival of the business.
Great!! these suggestions were very informative and useful to us..in this way we can at least survive or minimizes expenses and be able to sustain to live with in our means..(in business aspect)
All the suggestion in admin’s post are very much relevant in current circumstances. I suggest one more point – outsourcing. Every business has it’s core strengths which it should retain, the rest as far as possible should be outsourced. Not only this will give the business a focus on it’s activities but will also create additional business for outsource vendor. This will also help in right sizing the organization.
There is some good points here, most of them are currently in practice to this day, even with the current global slow down more managers and owners are actually doing a lot more work aswell to cover any staff expenses, Most of this could apply also to working from home which would reduce the cost in travel and fuel consumtion.