7 Ways To Protect Your Small Business From Recession
Aren't you just dying for a bail-out like the banks? In times of recession, small business owners are the ones that get hit hard the most. Unfortunately for you, you are not AIG and you are not qualified for a perpetual lifeline from the US government. If a company of that magnitude fell, it will certainly be felt around the world. But you? You are just a small business owner and you are, in every sense of the word.. small. Don't worry though. It IS possible to ride out this recession with your business still intact. Read on for more.
Small Business Tip # 1: Take note of your costs.
Now, more than ever, is the time for you to take stock of your costs. And that's from your bond paper to your utility bills. How much are they costing you per month? Are you generating any waste by leaving the lights on? Are you maintaining your equipment properly to avoid insanely huge repair costs?
Small Business Tip # 2: Cut your costs.
After taking note of your costs, you have to cut it. Obviously, the only reason you'd want to take stock of your small business costs is to find out where you can save up. If you're spending too much on tissue, cut down on usage. Be vigilant. Constantly look for ways to trim down and to optimize. You'd be surprised at how small cuts add up to big savings.
Small Business Tip #3: Fire employees ONLY if you have to.
Salaries take up a chunk of small business costs, but keep in mind that it will cost you much more if you do everything yourself. What's more is the fact that it may be detrimental to your small business if you replace existing employees with inexperienced new hires. I know of a real estate appraisal company who didn't take care of their talent and boy, they are suffering now. Experienced employees are naturally more expensive. But don't forget that they are also more efficient. If you're sailing rough seas because of the economy, keep your employees in the loop! They'd appreciate it. They may even go the extra mile for you. Remember, no one wants to lose their job in this economy either.
Small Business Tip #4: Fire clients who are not worth it.
Oh wow. I can't start talking about this and not just go on and on and on. There are just simply clients who are not worth keeping. They're usually the ones who bargain for the lowest price but are the most difficult. Since I'm in the service industry, I just simply jack up my price to fire them. And I cite the kind of service that they expect as the reason for the new price. Don't allow your clients to step all over you just because it is a recession. Time is also money. And time spent on clients who are too difficult may be better spent on marketing your small business to attract the type of clients that you would like to service.
Small Business Tip #5: Find your niche.
Take note of where majority of your business is coming from. Are they from senior citizens? Working moms? If you find your niche, it is easier to generate more business in that particular demographic. Over the long-term, you will find that moving within your niche actually makes you more profitable for a lot less work.
Small Business Tip #6: Ramp up your marketing efforts.
During hard times, the budget for marketing and advertising is often the first one to be slashed. No, no, no. Never do that. A recession is all the more reason that you should continue your marketing efforts for your small business. People will still keep buying even during recession, and they are more likely to only buy the brands they recognize. Where are your competitors now? Are they laying low? Seize this opportunity to make yourself well-known. When the recession is over, you will find your small business leading the market.
Small Business Tip #7: Stay positive.
It is hard to crack a smile when everyone is busy spinning of new story of gloom and doom because of the economy. But stay positive, okay? If you want your small business to stay afloat, do not condition your mind that it will fail. Be happy even during uncertain times. Remember, a recession is only a temporary condition. If there is a bust, there will also be a boom. While you are waiting, keep yourself and your small business together by staying positive in spite of everything.
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