How Businesses Can Stay Financially Afloat In Downtimes
Emmanuel Nnaemeka
Black Connect
The world is presently faced with an economic recession. Many businesses are shutting down due to the ugly situation. During severe times like this, business owners tend to find it difficult to navigate through. This is why they must put in place strategies that will help them stay afloat while the storms pass over. Read more about Business In this article, we shall review how businesses can stay financially afloat in difficult times like this.
Start Cutting Cost
The first approach towards staying afloat is doing more yet saving more. Therefore, business owners must look and seize opportunities for cutting costs. For example, if getting something done in-house is much more expensive is high time you looked outside for outsourcing alternatives. Let’s say, managing your website will require you to pay an employee, which might be expensive, you can get a freelancer.
Inventory Your Staff
The recession is the time to align the right staff with the relevant tasks. This is not the time to assign crucial roles to the wrong people in the name of hiring less expensive staff.Sign up for the Connect Nigeria daily newsletterLet experts do their jobs rather than micromanage and incur costs from poor execution.
Avoid Unnecessary Expenses
A recession is not the time for flamboyant lifestyles and other unnecessary vacations and bonuses. Downturns call for pragmatic spending which is channeled to the right resources and channels. For example, during a recession, rather than insisting on physically meeting with business partners, closing deals on Zoom is worth considering. Further, rather than renting exotic venues and overly decorating them for your business meetings, less expensive venues should be a good alternative in recession, and refreshment plans should be according to the invitation.
Add Another In-House Revenue-Making Business
Another way to stay afloat during downturns is by creating another source of revenue within your business. For starters, it could be launching another production line, but without launching something new, you can diversify a product to meet other needs.Register to attend the Connect Nigeria Business Mixer If you run a production company, rather than throwing away waste, it can be sold to other end users. For instance, several biscuit companies sell waste as feed to poultry farmers.
Avoid Needless Debts
Debt can be destructive or productive depending on how you deploy it into your business. Many founders get into debt due to miscalculated risks. However, there are good aspects of debts, especially those that increase profits. Therefore, a recession is a time to be very constructive about debts. Don’t take a loan until you are sure that the opportunities will turn out successful.Featured Image Source: Black ConnectGot a suggestion? Contact us: editor@connectnigeria.com
