Dealing with downtime with your business

During harsh economic times, consumers reign in their spending. There is a reduction in business transactions as the hardship bites in. Your business may bear the brunt of it all as revenues dwindle. This may result in some measures such as job cuts for your staff. In extreme cases, you may have to close down. However, you need not follow the route of closure. With discipline, determination and innovation, you can make it through economic downturn.

Below are some ways that can help you remain afloat.

  • Communicate with your staff. When the economy takes a dip, employees may become depressed. They may realize that you are late in paying them and are no longer giving them incentives. Such a situation may lead to disquiet, rumors and a lot of anxiety. Before things get out of hand, look for some time and talk to them. Explain how the situation is and let them know that you value their contribution.
  • Cut or minimize your costs. This is one area where you can really help sustain your business. You should identify those costs that can be reduced without affecting key operations. For instance, you can approach your suppliers and re-negotiate prices or contracts. Compare the prices being offered by other suppliers. Push for discounts. Engage your employees to look for other ways of reducing costs.
  • Obtain customer feedback. In such difficult times, the last thing you would want to lose is your customers. You need to do everything within your ability to ensure that they do spend. Find out what they would like you to do. Get their views on products and other ideas that can help your business remain operational. The fact that spending power is low does not mean that customers will stop buying. Offer them incentives such as discounts.
  • Reduce working hours. This might come in handy when you want to save your employees from losing their jobs. Instead of sending someone home, you can cut the number of hours he or she works. Discuss the possibility with your employees and assure them that this is just a temporary measure. Once the economy improves, things will go back to normal.
  • Re-examine your business plan. Make some changes to the business model. Do so in the shortest time possible. You can consider trying a new direction. Realign the business in accordance to the situation at hand. Prepare everyone for the new paradigm shift. While reducing costs, you should not compromise on the quality of goods or services offered to customers.
  • Market extensively. Use the internet modes such as the social networking sites where it is cheaper to advertise. Exploit the vast networking opportunities available online by advertising in different networking platforms.
  • Backup information. If you are having problems due to a disaster, you need to have¬†a disaster recovery provider that can help to secure your companies important information.

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