How a Business Can Survive a Recession
If business has been bad, nearly to the point of shutting down, perhaps these methods could help keep doors open. Recession is a naughty word for everyone, and we know how much it hurts our bottom line. Rather than focusing on the negatives, we all should focus on the positives and what we do best so that our doors remain open. We do this by identifying some of our best-selling products through customer interest. Consider reviewing the businesses books and review areas that can be cut to reserve cash flow. Operating a business during a recession is stressful; Jonathan Osler, suggests finding the exact source of the cause of that stress might be. If it turns out to be a major source, then it is important to figure out a way to minimize this factor. Tough times are around the corner if the business is stable or unstable, be sure to look over inventory and cash flow. Other experts believe it is a good idea to keep at least two months of operating expenses in case this recession hits harder than first believed. “If monthly expenses to operate your business equal up to $10,000, you should keep a minimum of $20,000 in your bank account at all times,” CPA and Consultant, Christina Sjahli. Some advice on measures to take during a recession offered by Jonathan Osler suggests that, as basic as it sounds, take a deep breath and take a break. Just slow down, and remember to discuss any worries with others. Keeping a clear head during tough times can be monumental. Our goal is to make sure our doors are not closed forever, if there are any government grants, and or loans offered apply for them. Operating a business can be a difficult career choice, especially during an economic downturn, though it also has rewarding aspects and benefits as well. There are a couple of ways to become efficient, if finances are tight, rather than laying off, cut hours. Change hours of operations, and save on utilities. Choose some items, and pass the burden of cost over to customers, of course, this will not always work, so only pick a few items. On other items that have not been moving, bundle and advertise a mix and match sale. If this works, then inventory goes down making room for other products that are flying off the shelves. To keep our doors open, pick a couple days a week for BOGO sales. Offering customers an opportunity to buy one, and get one for up to 50 percent off. Recessions are tough on everyone. Producers and customers alike. Though, with an open mind we can survive anything if we keep our head about us. Keep talking our way through all that ails us because we know we cannot change what lies before us. “When you start hearing or reading the news out there about a recession, be proactive and don’t wait until the storm arrives,” Sjahli offers. Hopefully everyone will be able to keep their stores operating through it all.