The harsh realities of the world recession are starting to bite and it is affecting working people and entrepreneurs alike. The entrepreneur especially, can feel the sting of the high fuel prices, and increased costs of doing business.
Small business bankruptcies are on the increase, and more businesses are shutting their doors. Pressures faced by small business can be compared to the great depression era of the 1920 and 1930's.
The above scenario is just a realistic position of small business in the world economy. I do not want to sound too pessimistic or negative.
It is mistakenly assumed that businesses that performed well prior to the economic crisis are the ones that will survive. Ironically business owners who performed well, are now, unable to deal with the current economic setbacks, due to their “problem free", past. These businesses are now having, to deal with real problems. Some struggling business owners are confronting their problems head on, and in some cases are doing exceptionally well, in the harsh economic climate.
A struggling entrepreneur is a tough entrepreneur. They used to the setbacks and pain of doing business. For the historically thriving entrepreneur, the sudden loss of major income or cash flow should be and eye opener, and not reason to close their businesses.
History has shown, that in times of economic recession or even depression certain businesses have done exceedingly well. These businesses have quickly changed their strategies to find gaps in the market and exploit those gaps to the full.
Herewith some suggestions on surviving the Tough times.
Press on, work hard and never give up.
Make changes to systems and consider ways to undercut the competition.
As outlined above, certain businesses are going bankrupt due to their inability to deal with the recession. Their customers still need products and services.
Don't cut back on the marketing budget. Continue marketing. You need more business to survive and boost income.
You don't have the time, or the resources to pursue difficult clients.
Consider promoting and selling your products on the Internet, if you have not started yet.
Promoting websites take time, but the financial rewards are much better in the long run.
Reduce your credit card debt, and settle outstanding debts where possible.
Business owners that can survive the recession will dominate the market, when the world economy stabilizes, since they have acquired so many skills, such as product development, marketing and financial management skills.
Use the economic conditions, to test your ability to swim up stream and no future problem will ever be to hold you back.
Our firm specialises in small business consulting, including cashflow management, business formation and entrepreneurial advice to an international small business community.