There might be a bright spot that results from the current recession. According to a recent survey by Network Solutions and University of Maryland’s Smith Business School, 66% of businesses are streamlining to be more efficient. This begs the question “why haven’t we all been doing this all along?”. Probably because so many people are running their businesses like they ran their personal finances-living (and working) outside of their means. The recession has obviously forced many businesses to reexamine things like budgets, operating expenses, advertising and human resources. Of course, once our economy rights itself again, the temptation will be to go right back to “business as usual”. I am urging you not to do this and instead:
Operate as if your recession days’ budget is all you have to work with. Reinvest in your business, set funds aside, and question every expense like you are now.
Instead of hiring back all the employees you might have let go, reconsider and bring back the best of the best. If you still have a need, consider outsourcing some tasks temporarily or permanently if it works out.
Consider expanding into more free marketing opportunities like social media, community involvement and blogging. Don’t necessarily go back to your full traditional marketing budget.
Don’t relax too early and don’t start incurring debt. Easy access to credit is part of what put our economy at such risk. Set aside additional funds, build a business nest egg and continue to operate on a lean basis. This will give you the advantage if the economic situation improves and if it doesn’t…
As both a CPA and certified financial planner, I can coach you through budgeting and streamlining your business. Call for a free 30 minute consultation!
by Steven Schlagel