Recession Proof Small Business Tips

ADVERTISMENTS

No matter what kind of business you’re in you’ve got to know how to keep your business alive during a economic recession like the one we’re facing right now. Here are some strategic tips to help your small business weather the recession.

Long before the cash flow in a business, large or small, starts to tighten up, the money management of that business has to be managed well. You should begin by protecting yourself from expenditures made on sudden impulse. We’ve all bought products or services we really didn’t need simply because we were in the mood, or perhaps in response to great advertising or the persuasiveness of the salesperson. Then we sort of “wake up” a couple of days later and find that we’ve committed hundreds of dollars of our hard earned money for something that’s not essential to the success of our business.

If your business is incorporated, you can eliminate many of these impulse purchases by including a rule in your by-laws that states: “All purchasing decisions over (specified dollar amount) are contingent upon approval by the board of directors.”  This little rule will force you to consider any impulse purchases that have a serious cost. It may even be a reminder in the case of smaller purchases.

If your business is a partnership, you can state that all purchases are contingent upon the approval of the other partner.

Should your business be a sole proprietorship, you don’t have much to worry about really, because as an individual you have three days to think about your purchase, and then to nullify that purchase if you think you don’t really need it or can’t afford it.

When you may think that you cannot afford it, be sure that you don’t short change yourself on professional services. This would apply especially during a time of emergency. Anytime you commit yourself and move ahead without completely investigating all the angles, and preparing yourself for all the contingencies that may arise, you’re skating on thin ice. Regardless of the costs involved, it always pays off in the long run to seek out the advice of experienced financial professionals before embarking on a plan that could ruin you.

This entry was posted on Friday, July 21st, 2017 at 8:43 pm and is filed under Recession. You can follow any responses to this entry through the RSS 2.0 feed.

Tags:   , , ,

You can leave a response, or trackback from your own site.

More Practical Information









 

Leave a Reply