Guest Blogger Suggests How to “Recession Proof” Our Businesses
January 19th, 2009 at 09:04pm Lorie Obernauer
I’m excited to introduce Holly McCarthy, our guest blogger who wants to share her thoughts about how we can all succeed during tough economic times. Holly writes for a number of online publications with venues in education and business. After college, she opened a small deli before having her son. Since then, she writes about her love for running a business and insights on what the market entails. She writes from research, knowledge, and day to day experiences.
I’d love to include more posts from guests bloggers, so if you’re willing to share your own experiences, knowledge, successes and failures, I’m sure that many of us would benefit from your insights. Please email me at lorie@apexgiftfoods.com with your ideas. In the meantime, please enjoy Holly’s post.
Best Business Practices During a Recession
Yes, it’s true that times are hard and that things are looking bleaker than ever before. It’s not easy to be standing amidst the rubble of ruins, watching as giants and minnows alike fall prey to the economic recession that the entire world is facing, and hoping against hope that you don’t become a casualty too. And then the worst is over, but the sun is yet to shine through the clouds of depression that have enveloped everyone and brought with them a pall of gloom. This is when you as an entrepreneur must start thinking about the best business practices you must adopt to see your ship sail through this difficult time, and come out stronger than before when the storm has passed.
- Trim the fat: Every company has them – the employees who refuse to pull their weight and are content to just go with the flow. In normal times, they would be noticed, but because of their seniority or other reasons, they would not be chastised or fired. A recession is a different ballgame altogether though, and the first thing to do in order to cut costs is to get rid of the people who are not adding any value to the company. They may be old-timers who’re not able to keep up with the changing times; they may be new hires who’re too slow in catching up with the rest; no matter who they are, they have to go if they don’t help or further your cause. The same principle applies to suppliers who don’t provide materials and inventory when you need them and who are not committed to your organization, and to customers who turn out to be bad debts more than once.
- Plan inventory: Inventory is associated with a number of costs, and when your goods are perishable, you’re likely to be left with a large amount of waste that turns out to be a costly exercise. Plan your inventory levels so that you have just enough to meet your weekly or daily needs (according to your turnaround time). Cultivate good relationships with suppliers and logistics providers so that you can order fresh inventory and have it delivered as and when you need it. And finally, make sure you have your finger on the pulse of your inventory so that you’re ready to order when the reorder level is reached.
- Listen to your customers: Without your customers, you have to admit that you have no business at all. So listen to what your customers are saying, through their words and their actions. Take in their suggestions and see if you can use them to the advantage of your company. Remember that money is hard to come by and that people have limited spending power. So your best bet is to focus on retaining the customers that you do have rather than trying out new ideas that may or may not work.
- Don’t cut back on technology: It may be expensive, but it sure is convenient. Technology helps you do business better, faster and more efficiently. It allows you to ignore the more trivial aspects of running a business and focus on the things that really matter. Even though the economy is down, don’t stop spending on your IT needs or cut back on ongoing projects. You have to think about the long term effects; once the recession is over, you cannot survive with technology that belongs to the Stone Age.
By-line:
This post was contributed by Holly McCarthy, who writes on the subject of business school. She invites your feedback at hollymccarthy12@gmail.com.
Please also post your comments on this blog so that other readers can benefit from your thoughts.
Entry Filed under: Business Tips
2 Comments Add your own
1. Shirley George Frazier | January 20th, 2009 at 7:51 am
This is a terrific tutorial and reminder of how to continue business through a rough period in time.
One more thing on business owners’ agenda is to create a monthly promotion plan, the basic means that reminds customers who you are and how your products and services add value to their lives.
I look forward to more guest posts and your thoughts, too, Lorie.
2. Pam Newell | March 7th, 2009 at 12:17 pm
This was is a great outlook to all no matter what economy we are in.
We have also had a idea that always worked for us if you could not use the inventory in at least 3-5 designs think really hard before purchasing that product. I know you have special clients that may need something but you might want to re-design your selections to super size the same products to eliminate excess inventory.
I love these type of postings and can’t wait to see what others do in brainstorming for challenging times cost savers!.
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