I know many small business owners are feeling the effects of the recession. Business is most likely slow or perhaps even non-existent. It’s difficult, but I want to congratulate you for doing what it takes to own your own business in the first place and for taking the risk of capturing your piece of the American Dream. Here are a few ways the recession may be affecting your business and some measures you can take right now to help keep your business afloat.
Maybe your sales are down, and once that happens, then it doesn’t take long for profits follow. Well, one way to stay afloat is to lower your profits in an attempt to achieve higher sales figures. The other way would be to spend more on marketing and advertising while keeping your profit margins. Yes, your profit figures will lower, however, you would be increasing your presence in the market which could make you the first to reap the benefits as soon as the economy emerges from the recession.
So just because you need to cut expenses, cutting marketing would be the worst idea. Have you tried marketing within social media websites? Many sites that allow you to post status updates such as Facebook, Twitter, LinkedIn and Myspace are free way to advertise! Create a Fan Page for your business within Facebook and let people know what you do. You only need to spend a few minutes a day updating your status, inviting people to “fan” you or perhaps offer a coupon for followers. Go to business chamber events or other networking events to find more people to “follow” you. By meeting people and gaining their friendship and trust, they will know who to call when someone is looking for your type of business.
Your monthly expenses are probably increasing when a recession accompanies high inflation. This could eat into your savings and you may start to face financial problems.
Avoid unnecessary expenses and attend only to those expenses related to your business, evaluating them on a priority basis.
More business advice, some adapted from Business Recession: What a Recession Means for Your Small Business, an article on MoreBusniess.com:
Learn to rotate your inventory faster so your profits can increase instead of maintaining a large inventory. Use the latest technology available to keep track of your inventory. Dispose of all your slow moving products through “fire sales” if necessary. A fire sale is the sale of goods at extremely discounted prices, typically when the seller faces bankruptcy or other impending distress.
Get familiar with “Just in Time” methods to maintain your stock and delivery schedules. And last, but not least, don’t make the mistake of assuming demand for everything in a recession goes down. Maybe you have to switch a product out for one this is selling now.
- Tax bills are lower this year, but they will incre...
- Tax Bills Won’t Rise for Parents Who Keep Older Ki...
- Government Jobs Not So Cushy
- More Than a Million May Lose Jobless Aid Due to De...
- New Jobless Claims Drop By 11,000
- Latest Good Reads
- 5 Lies The Big Banks Keep Telling Us
- Tax credit end not deterring US homebuyers
- Hawaii Governor Vetoes Oil Tax and Other Bills
- Still no Wall Street bill debate in Senate
- Economists: The Stimulus Didn't Help
- Home Prices in Feb Showed First Annual Gain in 3 Y...
- Obama Tells Panel on Federal Debt to Consider All ...
- Paring Back So You Can Retire Comfortably
- Spring Cleaning for your Finances
- Questions for the Tax Lady: April 26th, 2010
- Sales of New Homes Soar With Help of Tax Credit
- Client Confidentiality: an Important Aspect of Leg...
- More American Expatriates Give Up Citizenship
- Bank Tax Tops G20 Meeting Agenda
- 4 Million Will Pay Health Care Penalty
- Low Income Taxpayer Clinic Grant Recipients Announ...
- Family Swindled By Madoff Fights $61 Million IRS B...
- Cost-Saving Moving Tips
- Happy Earth Day!
- Obama to Wall Street: 'Join Us' In Reform
- Existing U.S. Home Sales Climb to 5.35 Million Rat...
- How to Make Next Tax Season Less Stressful by Prep...
- Latest Good Reads
- Small Businesses Get a Boost from Nonprofit Lender...
- Pistons Rick Mahorn files for bankruptcy
- 10 Tax Breaks for the Home, Room by Room
- Wells Fargo Earns $2.4B, Says Credit Is Improving
- No Job For Years and Still Looking
- Summertime, When The Livin' Is Pricey
- 10 Tax Preparers Plead Guilty of IRS Fraud
- 6 Biggest Mistakes Homebuyers Make
- Hobbies and Small Businesses
- Senate Considers Proposal to Curb Foreign-Tax Cred...
- IRS Announces New Advisory Council Members
- GM to Announce It Will Pay Back Government Loans S...
- What to do if you Missed the Tax Deadline
- Questions for the Tax Lady: April 19th, 2010
- California Jobless Rate Swells to 12.6 Percent
- OECD Crackdown on Tax Havens Seen Lacking Teeth
- How to Avoid Giving Uncle Sam a Free Loan
- Tea-Party Activists Stage Tax-Day Rallies
- 5 Lessons from the Obamas’ Tax Return
- Home Buyer Tax Credits Spark IRS Audits
- 10 Arguments Against Paying Taxes (that will not w...
- What’s in a Nickname? The Origins of MLB Team Nam...
- IRS Spending More Time Auditing Small Businesses
- What a Recession Means for Your Business
- Tax Day Freebies!
- Last Minute Tax Tips on the Today Show
- Tax Day 2010: How the Income Tax Put Al Capone beh...
- IRS Data Show Tax Agency Audits Big Firms Less Oft...
- My Appearance on FOX Business Yesterday
- Taxes: Are You Crossing the Line?
- Haiti Relief Workers Qualify for Combat Zone Exten...
- Washington Lawmakers OK $1-Per-Pack Cigarette Tax ...
- 9 Very Last Minute Tax Preparation Tips
- Can the U.S. learn from New Zealand when it comes ...
- 5 Least Tax-Friendly States to Live In
- Tax Resolution Programs
- Nation's Soaring Deficit Calls for Painful Choices...
- No More Taxes on Short Sales, Foreclosures
- Government Goes High-Tech to Catch Tax Offenders
- Questions for the Tax Lady: April 12th, 2010
- Obama Election-Year Jobs Agenda Stalls in Congress...
- US Tax Bite Smaller than Other Nations'
- Poll: More Americans Say Their Taxes Fair
- Avoid Common Mistakes When Filing Your Tax Return
- CDC: States Not Putting Cigarette Tax Funds Into E...
- Understanding The U.S. Tax Withholding System
- More Than 200,000 Jobless Counting On An Extension...
- Big Brother is Watching: IRS Uses Social Media Sit...
- The Joy of Tax
- Top 10 FAQs About IRS Refunds
- 8 Do's and Don'ts For Your 401k
- Cigarette Tax Bump in 15 States Lifts U.S. Fees to...
- What You Can Learn From Your Tax Return
- 2 Years After Tax Law, Michigan's Making Movies
- Top Ten List Of Things To Know About Making Federa...
- Property Tax Rebellion Brewing After Real Estate C...
- Few Will Use Tax Refund to Indulge: Poll
- Are You Finding Difficulty Coping During Tax Time?...
- 3 Smart Ways You Can Fight Rising Taxes
- Charities and Deductions
- IRS Launches New Global Program to Target High Wea...
- Feeling Blue About Pink-Slip Taxes
- Tax Tips for 2010
- The Pros and Cons of Soda Taxes
- Questions for the Tax Lady: April 5th, 2010
- Californians get Improved $10,000 Home Buyer Tax C...
- 5 Myths About your Taxes
- Three New Issues to be Addressed by IRS Industry I...
- Reminders for Last-Minute Tax Filers
- March Unemployment Rate Unchanged At 9.7%
- FactCheck.org: IRS Will Not Need to Hire 16,500 N...
- ▼ April (104)
- ► 2009 (987)
- ► 2008 (410)
- ► 2007 (191)