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Make sure to create concrete steps to follow and then transmit the plan to other managers or partners so that they can follow it as well. Your first course of action when hit by a recession should be to cut expenses where you can. This will help your business stay in operation while you work out a more permanent solution or until the economy recovers. Look around to reduce overhead costs like utilities, administration, and wasted materials.

Protect Your Income During a Recession

You can also reduce your inventory levels so that your assets aren't so tied up in product that may go unsold for months. If those don't work, consider: Cutting your advertising spending. Pull out of traditional advertising like television and radio and instead focus on improving your social media presence. Doing so is free, even though it might take more of your time.

Your other option to downsize. This can mean either reducing employees or moving to a cheaper location. Your remaining employees may have to work harder, but your business will at least be able to survive. Cross-train your employees. If you do end up letting some employees go, you will need others to step into their roles. This is why it is important to cross-train your employees for various roles within the business. This is best if done before it is needed. Focus on customers. You should focus all of your efforts on retaining regular customers and maintaining your relationships with them.

Make sure that they know that their business is appreciated. In addition, keep your quality just as high as before, even it you've had to make other cuts around the business. A recession is also a good opportunity to evaluate your customers. You may have those customers who are not profitable to work with.

A recession is the perfect time to sever these relationships and seek new ones. Don't cut your prices. Many businesses turn to deals and sales when the recession is hurting them. However, doing so will only make it harder for customers to justify paying your regular prices when the recession is over. In addition, these lower prices can cut into much needed profits. The only exception is that you may want to offer one-time payment extensions or discounts to customers that are also having a hard time.

Just be clear to them that you are only extending this service once. Can investing in the agricultural sector like local food processing, rearing of animals help in gaining and surviving of recession period? The ag sector of an economy is typically a good investment, because food is always In demand. If the economy is in recession, yet you have investable funds available, that means you're already surviving the recession.

Yes No. Not Helpful 1 Helpful 2. The fact that an economy may be in recession should not greatly affect one's investment decisions. Recessions end, but good investment choices continue to reward over the long term. In fact, if a recession causes the price of a good investment to go down, that's the time to buy even more of it. The best place to invest is always a high-quality company. Not Helpful 3 Helpful 3. Include your email address to get a message when this question is answered. Already answered Not a question Bad question Other. Edit Related wikiHows.


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How to Survive (and Thrive) in a Recession

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