Doom and gloom abound at times of economic downturn.
The media is full of stories about companies laying off workers.
Pay freezes, if not wage cuts, are suddenly commonplace.
There is an overlying fear of what the future holds.
Can homeowners keep up their repayments when the family income is slashed? How can businesses survive? Well, a recession can offer the astute small business owner the opportunity to compete on a level playing field with larger competitors.
The tech-savvy entrepreneur can even have the advantage over big business.
This article aims to assure owners of small to medium enterprises (SMEs) that they can survive the recession and even come out of it with a sizable competitive edge.
The key areas that will be examined are: oGood financial housekeeping oIncreasing your share of the market oEffective use of technology There are a number of steps that can be taken to assist survival in a recession.
It is absolutely vital to keep costs down.
The essential factor in generating cash flow is to question the necessity of every penny spent.
A tight control on the purse strings will make for a sound financial foundation.
Staff levels need to be reviewed.
Rather than lose valued employees, can hours be cut without affecting the company's output? Avoid the temptation to make arbitrary staff cuts that larger companies have found necessary; the resulting demoralized and pressured workforce will defeat the objective.
By carefully evaluating each employee's individual worth to the organization, you will be in a stronger position coming out of recession.
Assess your suppliers.
Are they really giving you the best service? Seek out their competitors.
Obtain recommendations from friends and colleagues.
Get the best deal for your company.
Beware, though, that you don't just dump suppliers with whom you have built up good working relationships; give them a chance to compete.
Buying on price alone is never a good strategy.
Make sure the level of service is as good as or better than your current supplier.
Most companies cut their marketing budgets in times of financial downturn.
This is where your sound budgeting can put you at an advantage.
Look at what your competitors are doing, particularly the larger firms.
Where are they making cuts? Invest some of the cash that you have saved through your cost controls on your marketing strategy.
Spend more on promoting your profitable product lines.
Additionally, look for imaginative ways to promote your company without spending a great deal of money.
Generate a positive public relations campaign based on how your sales are standing up to the restraints that are hurting your bigger competitors.
Get to know the business editor of your local newspaper.
Build relationships with the editorial staff of the main publications within your industry.
More people are shopping on the internet than ever before.
If you sell products to the public, a website with an online shop is an absolute necessity.
Effective marketing will put you at a competitive advantage over even your largest competitor.
Major High Street retailers tend to rely on brand identity on selling online.
Very few large companies pay attention to optimising their websites so they can be found in the search engines based on particular product searches.
Money spent on an effective web marketing strategy will pay dividends.
The use of social networking sites such as Facebook, Twitter and MySpace have increased exponentially over the past year or two.
Businesses wishing to exploit the 16 to 24 age group, in particular, need to find ways to gain exposure on these sites.
The media is full of stories about companies laying off workers.
Pay freezes, if not wage cuts, are suddenly commonplace.
There is an overlying fear of what the future holds.
Can homeowners keep up their repayments when the family income is slashed? How can businesses survive? Well, a recession can offer the astute small business owner the opportunity to compete on a level playing field with larger competitors.
The tech-savvy entrepreneur can even have the advantage over big business.
This article aims to assure owners of small to medium enterprises (SMEs) that they can survive the recession and even come out of it with a sizable competitive edge.
The key areas that will be examined are: oGood financial housekeeping oIncreasing your share of the market oEffective use of technology There are a number of steps that can be taken to assist survival in a recession.
It is absolutely vital to keep costs down.
The essential factor in generating cash flow is to question the necessity of every penny spent.
A tight control on the purse strings will make for a sound financial foundation.
Staff levels need to be reviewed.
Rather than lose valued employees, can hours be cut without affecting the company's output? Avoid the temptation to make arbitrary staff cuts that larger companies have found necessary; the resulting demoralized and pressured workforce will defeat the objective.
By carefully evaluating each employee's individual worth to the organization, you will be in a stronger position coming out of recession.
Assess your suppliers.
Are they really giving you the best service? Seek out their competitors.
Obtain recommendations from friends and colleagues.
Get the best deal for your company.
Beware, though, that you don't just dump suppliers with whom you have built up good working relationships; give them a chance to compete.
Buying on price alone is never a good strategy.
Make sure the level of service is as good as or better than your current supplier.
Most companies cut their marketing budgets in times of financial downturn.
This is where your sound budgeting can put you at an advantage.
Look at what your competitors are doing, particularly the larger firms.
Where are they making cuts? Invest some of the cash that you have saved through your cost controls on your marketing strategy.
Spend more on promoting your profitable product lines.
Additionally, look for imaginative ways to promote your company without spending a great deal of money.
Generate a positive public relations campaign based on how your sales are standing up to the restraints that are hurting your bigger competitors.
Get to know the business editor of your local newspaper.
Build relationships with the editorial staff of the main publications within your industry.
More people are shopping on the internet than ever before.
If you sell products to the public, a website with an online shop is an absolute necessity.
Effective marketing will put you at a competitive advantage over even your largest competitor.
Major High Street retailers tend to rely on brand identity on selling online.
Very few large companies pay attention to optimising their websites so they can be found in the search engines based on particular product searches.
Money spent on an effective web marketing strategy will pay dividends.
The use of social networking sites such as Facebook, Twitter and MySpace have increased exponentially over the past year or two.
Businesses wishing to exploit the 16 to 24 age group, in particular, need to find ways to gain exposure on these sites.
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