Don’t Expect to Take Advantage of a Recession

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It’s that simple, the goal in a serious recession like we’re most certainly facing is survival, not making a profit. This becomes obvious when you review what has happened in the past when the economy has faced similar glitches. It is your job to help your business survive, first and foremost.

Since the 1970’s all U.S. recessions have been caused by inflation, particularly increases in the price of oil like we have now. Our dependence on imported oil has only increased, not decreased, since then. Oil price inflation and war in the middle east has caused this and previous recessions. Until we can end out dependence on foreign oil we will repeat our cycle of recession.

Correct Recession Survival Strategies

  • Established brands have a better chance of surviving a recession.
  • You need a unique selling proposition
  • Your business must deliver your value efficiently
  • Reduce the amount of space your business uses
  • Reduce fuel costs
  • Push energy cost to your employees
  • Keep prices down and quality high as much as possible
  • People are worth less during a recession. Don’t be afraid to cut employee costs to the bone.
  • Use temps and contractors in place of a permanent work force
  • Create efficiency for your customers
  • Find ways to reduce your clients’ energy and employee costs business.

Companies that do these things should not only survive but they should also be able thrive in this new environment. While that doesn’t mean the value of your company will grow, it does mean that you can earn solid profits.

This entry was posted on Sunday, November 12th, 2017 at 8:44 pm and is filed under Recession. You can follow any responses to this entry through the RSS 2.0 feed.

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