.Economists are saying that the recession has ended. But for small businesses, times remain tough and many are still struggling to survive the economic recession.
According to Ross Hall in his article “Surviving a Downturn: How Your Small Business Can Survive an Economic Downturn” , there are four key factors that will help your business survive an economic downturn:
- Focus on your business = Instead of thinking new services to be launched or new marketing campaigns, focus on their core business. Close down non-core activities and reducing costs where there is no value back to that core. Go back to your basics.
- Conserve cash = It is important to build your cash base to weather the storm, but you need to be sensible where you cut your costs.
- Keep relationships solid and intact = To survive, you need to have trusting relationships with your clients and staff. Act professionally.
- Keep your communication open and honest = This is especially true if your business has employees. Keep them informed as to how the downturn is affecting your business, and listen to them.
When the downturn is over — pretty much at this point of our economy — Ross suggests a number of steps to take:
- Don’t rush out and start spending money, as your cash reserves may still need building up.
- Thank your staff — a simple lunch and a heartfelt “thank you” for their hard work will suffice.
- Keep up the good work, and watch out when inefficiencies and complacency creep in.