THREE WAYS FOR BUSINESSES TO SURVIVE ECONOMIC RECESSION
It is no longer news that the world is passing economic downturn occasion by the pendemic. In order for a business to survive and florish during economic downturn. There is need adopt certain practices to keep it strong and competitive. Three of such factors have been identified and are highlighted below:
Understand your Assets and Liabilities
One key thing that is necessary in business and daily life is the issue of understanding the difference between your assets and liability. Assets is anything that brings money into your pocket why liability is anything that takes money out of your pocket. This is a the simple layman's definition of assets and liability. It is possible to convert what is meant to be a liability to an asset for example a house is categorised as a car can either be a liability or an asset depending on what it is used for. With the present economic downturn it is necessary to convert our liabilities to assets.
Although, a lot of people are against diversifing. They argued that focusing on one particular business is the key to survival and sustainability. But present economic realities should encourage businesses to diversify. The businesses that provide essential services will have more growth during economic downturn. It is therefore wisdom to diversify into such categories especially if your business is not in the essential service or product provider category.
It is the time for most business to structure both in term of cutting down excessive work force and completely removing unbudgeted expenditures. It might also be the time to re-enforce marketing strategies. The company can also form new strategy alliances to further boast strength. Old order of operations might not be relevant now therefore keeping to them will be counterproductive.
In conclusion, it is necessary to check our business in the light of the above points and reshape our businesses for good footing in order to survive the current economic downturn.
Thank you for reading my write-up.