How Can Small Companies Survive the Recession?

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The recession is clearly here now as we look upon the economic trends of the first 3 months of 2008. We see that the Dow Jones Industrial Average is down from the high flying years of 2005-2007. Commercial banks and investment funds are writing off billions in sub-prime loan losses and are inching toward failure. The Federal Reserve is cutting rates, essentially printing money, which is causing inflation while doing little to cure the economic downturn.  Publicly traded corporations are missing their earnings forecasts. It is getting bad out there and getting worse my friends so it’s no wonder that many small business people are asking, “How Can Small Companies Survive the Recession?

Let’s look a some things you can do that will help your small company or business survive the recession in 2008 and most likely on into 2009:

1. Control your money.

Make sure that you’re using tight financial controls in order to avoid leaking out money. In great financial times it is easy to overlook small leaks but in tough times you have to crack down on even minor financial improprieties by employees and vendors. Review your business expenses on a daily basis to insure that there is no where that you are hemorrhaging money. You must always be thinking about ways to increase revenue and control your costs.

2. Advertise

Keep your name out there with the public. Use surefire advertising methods that have worked well for you in the past and avoid too much experimentation. Keep a close eye on your advertising expenses to make sure that you are getting a good bang for the buck.

3. Offer Discounts

Maintain customer loyalty by offering aggressive discounts. Use valued customer programs to retain customers and to lock them into dealing with your business. As always, track the profitability of such discounts and, should they be costing you a significant amount with little customer retention, drop them ASAP.

4. Focus on Customer Service

Maintaining good customer service is critical to surviving a recession. As your competitors get sloppy during the recession, you need to be there to take advantage of their weakness. You must keep your current customers satisfied and obtain new customers by word of mouth about your superior service level.

 

This entry was posted on Thursday, December 7th, 2017 at 8:46 pm and is filed under Recession. You can follow any responses to this entry through the RSS 2.0 feed.

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