How businesses can survive in a Recessionary economy By: Shivam Prakash Chaurasia Marcom Executive

Recession is unavoidable but can be outsmarted if

planed proactively. Economies never do lack the

possibilities of falling right back into it. To make

sure that your business survives is to don’t panic.

Panic can be easy but self-destructs. Instead of

panicking you can confront change which is coming

to you and consider change as an opportunity of

advances.

Businesses do need to act cautiously but remain

vigilant in monitoring the market landscape for

opportunities. During a recession, cutting

unnecessary expenditures from a business’s budget

seems like a logical first step in cost savings. However, do NOT cut your advertising

budget if at all possible. While facing recession it is essential to not only sustain current

advertising presence, but to consider expansion. Many other competitors will be cutting

their advertising budget, giving your business a loop of advantage. You can create a

dominant presence your business that stands out while others are fading into the

background.

Analyze all attribute of your business. Which areas are you going to need during the

next phase? Which areas need tidying up? Which should be cut out?

Try evaluating your excessive debts and eliminate them. This surely lowers the risk when recession strikes. Cut costs where possible. During a recession, when sales decline, your suppliers are most likely also taking a hit. When sales are down, this is a good time to renegotiate service agreements with your vendors.

Never go for changes unless needed. Theirs’s an old adage, "If it ain't broke, don't fix it." If your business practices were profitable before the recession, they need no refurbishing now; the business simply must find ways to ride out the recession.

Some other ways to tackle recession can be reducing inventories and overhead at

any cost. Look for items that weren’t of any use frequently. That's where your cash is

locked up -- in your cost of materials, labor, and so on, waiting to be turned into cash

after it’s sold and the receivables collected. This can result in a huge cash drain.

Make sure your work force is properly trained and cross-trained. So if the primary

worker is unavailable secondary worker can take his place.

Alternate employment can be a great expense cutter. Conduct selection of senior

community members with business experience. Often they will work for less money,

but bring invaluable experience. On the other hands are college interns. College

students who need work experience will work for free. Outsourcing is another

option. Having outside firms perform some administrative and management duties

instead of salaried employees can also save money.

Take calculated risks during recession. Focus on delivering better qualities for long

run. Build stronger relationship with your customers through newsletter, frequent

contact, special offers. Survey your consumers to observe what they want and then

sell it to them. Get organized and efficient by focusing on providing better services

.Research new technology and methodologies that makes your business stronger for

the next phase. And always remember , A recession gives you the gift of time. Use it

well. And emerge stronger and more competitive.