Archive for the ‘Tips on Surviving-a-recession’ Category
Recessions Are a Fact of Life
November 28th, 2009
Believe it or not, a recession is a fact of life. Why? Because it is part of the business cycle and this is bound to happen when the economy expands, slows down until it hits rocks bottom and then recover once again.
The only difference between a recession and the four seasons we experience in a year is that this problem does not happen often. It may take years before this happens again and in our county’s history, the last time we had a recession in 2000.
When it does happen, experts won’t admit that it is there even if everyone around knows that it is. How? By looking at various factors which include consumer spending, the unemployment rate, industrial production, real income and wholesale trade.
One solution to help stimulate the economy is to lower the interest rate. But since this is not enough to make the problem go away, we have to our share until this is over. Companies have to make job cuts but the bad news is that you put more people out of work because this is the only way to stay in business.
But is putting people out of work the only solution for a business to survive? Some experts disagree because if the company is able to focus on customer service, lower price points and make cuts elsewhere, you help prevent the unemployment rate from getting higher.
On your end, if you still have a job, you have to spend less because the prices of goods will go up which is why you only have to buy the essentials. One thing you have to cut down is your fuel expenses so you might want to trade in your SUV for a smaller car that has better gas mileage.
To make sure you are not on the list of the next people to be axed, find ways to make yourself valuable in the office by taking on other responsibilities. If this is not enough to put money on the table, see if you can get a second job until the situation improves.
There is an upside to a recession. If you need money, you can borrow at a lower interest rate and you will be able to buy stocks, bonds and property at very affordable prices.
A recession is a fact of life and if you think that this happens only in the US, it has happened in other countries as well. What makes this current one so different from others in the past is the fact that what started here is now spreading around the world which is why nations are talking to one another to help prevent it from getting worse.
How long will this recession last? It is anybody’s guess but this will last until the end of the year with hopes that things will improve by the first or second quarter of next year. How it affects people will be different depending on their current financial situation so before it is too late, save up. If you can, invest in a few things which you know will make you money in the future. For those who are unsure, you better hire a financial planner so you are safe if ever life throws you a fastball.
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Anti-Recession Tactics
November 18th, 2009
“This is one of the most challenging economic environments we’ve seen in many decades,” says American Express CEO Ken Chenault. When you add up all the components of the current economy — joblessness, foreclosures, consumer debt, dried up credit — you’ve got one heck of a mess. Digging out is likely to take years, expert analysts believe. So how does one adjust their online and offline marketing campaigns to speak to this new audience of broke and unhappy consumers? How should management teams lead their companies out of this downturn? According to top performing businesses, many of the anti-recession tactics are really quite simple.
The most important of all anti-recession tactics is to understand the new problems your customers face and offer them innovative solutions. The most successful businesses are ones that can save customers money, make their lives less stressful and offer more value. For instance, one company developed a fast-curing resin to maximize productivity for injection-molding machines; yet, when the recession happened and greater output was no longer needed, the company switched gears and developed a less expensive, slower-curing resin, which was ultimately profitable. “We can’t add meat to a burger anymore,” admits CKE marketing chief Brad Haley, who oversees the Hardee’s and Carl’s Jr franchises. When times are tough, executives need to be more creative. He adds, “Carl’s Jr. is promoting a guacamole bacon cheeseburger. Avocados are a less expensive topping.”
One of the anti-recession tactics that many businesses fail to do is to keep investing in the core. One thing you cannot afford to do is let critical components of your business — like product innovation and customer service — fall by the wayside. When these dark days are over, you want your company to emerge like a butterfly out of its cocoon; you want people to say, “Even though the economy’s doing bad, this company seems to be faring well… look at all they’re doing!” Companies that stagnate now can never compete later. “We’re not going to cut innovation,” Intuit’s Brad Smith tells CNN Money Magazine. “This company, for 25 years, has been fueled by new-product innovation. We’re protecting the innovation pipeline so we come out of this strong.”
Anti-recession tactics require you to resist temptation, which could be especially hard if you’re a fast-moving, impulsive, risk-taking sort of person. On a good day, you may have no qualms about acquiring some of your smaller competition that’s up for grabs, especially if the price is right. Yet, a recession may not be the best time to branch out and acquire new money-sucking extensions. Generally, companies are twice as likely to acquire businesses and merge when the economy is doing well, statistics show. However, there are business moguls like Warren Buffet who believe in being greedy when others are fearful. This could be a great time to absorb smaller companies that are full of fresh talent and skills, but be smart about all the calculated moves you make during an economic downturn.
Helping you to Maximize Your Profit in ‘09
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Tags: Anti-Recession Tactics, Tips on Surviving-a-recession |
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