How Your Business Can Survive A Recession
http://www.articlesdirectory.org/articles/137398/1/How-Your-Business-Can-Survive-A-Recession/Page1.html
faye bautista
The author is a freelance writer and also writes about business
topics such as call center
and call center in the philippines. By faye bautista
Published on 20 April 2009
A business cannot fight the current recession just like a farmer cannot fight a storm that is ravaging his field. The farmer can prepare for the storm but he still has to sit it out until the storm pass by. The same thing can be said for a business.
A business cannot fight the current recession just like a farmer cannot fight a storm that is ravaging his field. The farmer can prepare for the storm but he still has to sit it out until the storm pass by. The same thing can be said for a business. There are a few things that one can do to prepare for a recession but the bulk of the time is just to keep the business afloat during a recession.
During a recession, you have to make cuts in the budget and instead of spending more on advertising, it is best to use this money in retraining your staff because customer service is key when you want to set yourself apart from the competition. Not of course unless you have a specific advertising channel that you are 100% sure that the income from that advertising effort is greater than the cost of advertising.
Cuts should also be done in terms of how much you get from the business and if you are the owner, you might want to lower the profit margins to increase the business volume, until such time that you can put them to normal levels. By doing that you are able to satisfy the most important person you will ever meet in your business and that is the customer.
If you business allows it, you might want to outsource your customer service function to a call center abroad where costs of labor is cheap.
Another solution will be to offer sales and discounts as this ensures their loyalty. You might want to look at implementing a loyalty point system.
In a recession, most companies will retrench their workers and close down several offices or branches. If your cash flow allows it and you don't have much loans, you might want to think about preparing for a bigger market share and expand to those areas where your competitor close down.
Nowadays, interest rates are cheap. You might think that most banks are not willing to lend people money but thanks to the bailout, you are able to do so. You just have to tell the bank what steps you are taking during the recession so they know what you are doing and understand that the steps you are taking are for the long term.
If you do not have a website yet, now is the time to have one. It is very cost effective to have an online storefront. Online Store operation costs is way lower than running a brick and mortar store. Plus you are not tied to a certain geographic area as the nearby cities and states can be your customers too.
A recession affects everyone and it does not matter if you are employed or you are running your own business. How badly things get depends entirely on your financial situation so you just have asses it first before taking any appropriate action.
During a recession, you have to make cuts in the budget and instead of spending more on advertising, it is best to use this money in retraining your staff because customer service is key when you want to set yourself apart from the competition. Not of course unless you have a specific advertising channel that you are 100% sure that the income from that advertising effort is greater than the cost of advertising.
Cuts should also be done in terms of how much you get from the business and if you are the owner, you might want to lower the profit margins to increase the business volume, until such time that you can put them to normal levels. By doing that you are able to satisfy the most important person you will ever meet in your business and that is the customer.
If you business allows it, you might want to outsource your customer service function to a call center abroad where costs of labor is cheap.
Another solution will be to offer sales and discounts as this ensures their loyalty. You might want to look at implementing a loyalty point system.
In a recession, most companies will retrench their workers and close down several offices or branches. If your cash flow allows it and you don't have much loans, you might want to think about preparing for a bigger market share and expand to those areas where your competitor close down.
Nowadays, interest rates are cheap. You might think that most banks are not willing to lend people money but thanks to the bailout, you are able to do so. You just have to tell the bank what steps you are taking during the recession so they know what you are doing and understand that the steps you are taking are for the long term.
If you do not have a website yet, now is the time to have one. It is very cost effective to have an online storefront. Online Store operation costs is way lower than running a brick and mortar store. Plus you are not tied to a certain geographic area as the nearby cities and states can be your customers too.
A recession affects everyone and it does not matter if you are employed or you are running your own business. How badly things get depends entirely on your financial situation so you just have asses it first before taking any appropriate action.