1. 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.

2. 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.