Winning or surviving during a recession
October 23, 2008
1. Layoff bad staff – people who cost more than they benefit the business. If someone’s really expensive but provides more benefit than they cost then keep them – it’s all about the ROI.
2. Make sure people know the formula for who stays and who doesn’t – make it clear that the company needs them to pull together to get through this dip.
3. Re-negotiate everything; whatever you currently pay for electricity, phones, paperclips, internet access, outsourced services… Now is the time to renegotiate a lower rate – it’s harder to compete if your competitors have lower costs.
4. Set targets – you should do this anyway but during these times it’s important to have clear targets and goals, let people know what’s expected of them.
5. Cut costs…
– Print reduction project, encourage users to print less
– power down anything unused including PC’s overnight
– investigate free software alternatives – 7zip is better than winzip and it’s completely free
– reduce meetings – meetings should have agendas and clear objectives, more productive meetings leads to less meetings (don’t make people stand)
– If your sales go down 10% then your sales staff levels should go down 10% too; if required, make it quite clear that the bottom performer goes at the end of the month – you’re not a charity.
6. Retarget your product – create a sales pitch that explains why your product / service is even more valuable during a recession and get the word out now.
1.Blog about surviving the recession – there will be more unemployed people to read your blog and they will be interested in the recession – how to save money, how to get a job etc
2. Cut costs now – save just in case – if you don’t lose your job then you can have one heck of a party / holiday when the recession is over, if you do then you will have a bit of a buffer to get by on.
3. Read blogs about living cheaply 🙂 – you can survive on a heck of a lot less than you realise.
4. Go through your bank statements and see where the money goes – trim where possible.
5. If you have debt then renegotiate rates with lenders – most people don’t realize this is possible – not always, but sometimes and certainly worth a try.