It’s official that nigeria is in a recession but I believe we’ve know this consciously or subconsciously for a while now. Many businesses have gone through recessions in the past and to think that a business can avoid the recession is a blatant lie, this is because a recession has a domino effect.
At this point we’ve been told that we would get out of the recession sooner than we know but the truth is you never know if it would be short or long term therefore as a small business owner you need to arm yourself and know that you haven’t seen the bottom yet.
There is admittedly a downturn of events therefore rather than panic you have the chance to take advantage of the change and all you need to do is make the right choices. As a small business owner you can lead the way out of this recession, start with leading your employee’s by following this 10 recession survival rules for small businesses;
- Revenue’s would drop so what you need to do is evaluate and eliminate any debts that you may have accrued. Note that any debt can be worked out.
- Reduce your head count and overhead and increase productivity, this means you are down sizing.
- Using indicators its important to track your finances daily. With this indicators you can track what service and product you put up that brings in profitability.
- In your books try to look for items that does not move or turn frequently, is it cost of materials, labor this may be where your cash is locked up. Reduce your inventories and overhead cost turning it into cash.
- Productivity at this point should remain high, therefore you have to train and cross-train your staffs.
- Take time to review and reduce your marketing and traditional media advertisement, this may be where you are spending way too much money.
- Compete with quality products, services and uniqueness instead of discounts and giveaways. This way you are resisting profit eating sales and discounting.
- You may be afraid to expand, but using the internet can help you expand your brand geographically especially when you have a unique service.
- Analyze and track key indicators, productivity and finance. Get smaller and steady then you can grow your profit slowly and steadily.
- The most important principle which you must never forsake is “Focus on quality”. Its that simple and its what wins in the long run.
Quickly get better or be forced out, make the right choice today!!
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