Wednesday, December 17, 2008

Bad Economy is Good for Your Business

You read that headline correctly. Let me be more specific a struggling economy is good for business. Businesses that anticipate and prepare for recession will survive. But, good businesses don't just survive during recession they thrive. That's because good business leaders are motivated into action when things get tough.

3 Recession Survival Tactics
In the Philadelphia Business Journal, Strategic Business adviser Carter Schelling presents precautions businesses take to prepare for looming recession, likening it to fire drill. "Companies," he says, "get better at what they do during bad times."

First, Schelling suggests that business owners gauge customers' ability to resist recession and redesign customer offerings accordingly. Isn't this the basic rule of business? Offer customers what they want, where they want it, when they want it. Your business is only successful if your customers deem it as necessary.

Second, use lean principles, replace unhappy workers with those more motivated, eager and highly competitive. There is nothing more detrimental to a business than sour employees. Every employee from the every rank must be encouraged and motivated. Forget looking at employees as overhead, salaries or bodies. Likewise don't think of layoffs as cutting costs. The right employee, including the person who answers the phone, is a sales representative.

And finally, over-communicate. Talk to your employees. Explain strategies to your customers. Encourage communication back from your customers. Don't be afraid of what you'll learn it could save your business.

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