How Not to Let Recession Affect Your Business
I hear plenty of people talk about recession and the ill effects it has on the economy at the macro level and our businesses and us individually at the micro level. It seems to be an easy thing to say that “My business isn’t doing well because of recession”; easy to say and a very handy excuse at that. Here are things you must be doing during recessional times:
- Sell more: One of the most obvious things to do, which might be more like a slap on the face of recession is the idea that you should sell more in times like these. Of course, people might not have too much money to spend but you must understand that human needs remain constant no matter how the economy is doing and problems are bound to be solved at all times. If your business solves your consumers’ problems or fills a need, it is bound to stay.
- Reduce expenses: If you have noticed already, we are working on a very simple equation that leads to profits. In the point above, you are increasing your revenue and here you will reduce expenses. Try to cut down on unnecessary expenditure – fancy offices, too many employees, corporate jets and corporate parties. As you cut down on such useless expenses and increase revenue, this should be enough to insulate your business from recession.
- Get into the lean operational mode: Some things in your business will be inevitable — operating expenses, travel expenses and much more. The key here is to go lean. Instead of traveling for meetings, you could use web-conferencing; use Internet based calling applications like Skype instead of using normal telephone lines; you could use telecommuters instead of hiring full-time employees. You get the idea, don’t you?
There is no such thing as recession affecting a business, as long as your business is fully prepared to handle any such untoward external factors.
Did your business take a hit due to recession? If yes, what did you do? Please share your stories here.
