Mario Bruni, who runs a plumbing and heating business in White Plains, New York, is bracing for a slowdown in the coming year.
“We didn’t forecast huge growth,” says Bruni, who has brought expectations down to 4 percent from the more robust double-digit gains of recent years.
In 2001, he hired a consulting firm to help his 50-man operation develop tighter financial controls and says much of what he learned then will help sustain the business if a full-blown recession ensues.
“It’s time to tighten up the belt strings,” he says. Bruni & Campisi Inc. adheres to a strict budget, gets daily financial reports, closely monitors its collections, and has a host of employee incentives to keep business humming along profitably.
Here’s what some experienced busines owners and consultants say they’ve learned to do to prepare for a slowdown in business activity.
- Secure your lending relationships
- Improve your supply chain
- Motivate your employees
- Clean up your financials
- Get a handle on your cost structure
- Take a hard look at customers
- Hang on to your cash
Photo by MSDesigns.
Small Bizs On Surviving A Recession
February 1, 2008 by Rich | 1 Comment
In Operations, Revenue, Small Biz
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Anthony Donnelly on February 1st, 2008 at 9:01 am
Great article.
Since I deal with many businesses every day and hear their troubles and concerns about the economy and how it directly effects them and their business, I’d like to build upon the last bullet-point.
Holding on to cash is something that everybody does in a jittery economy or recession. Uncertainty about the future makes us all less impulsive to spend on items that are not classified as essential - we never know when we’ll need that extra cash.
This is one reason why my business is booming right now and helping many companies of all sizes battle the coming recession. Merchants Barter Exchange (MBE) helps buinesses in most markets gain new customers, service existing customers better, and creates alternative means to incentivize employees without the same cash impact.
Having streamlined traditional barter into a “100% trade” system using a centralized broker network of local and national clients, MBE is able to connect businesses with needs together with businesses that have the surplus capacity, time or inventory to fill those needs - all 100% on barter! (The only cash element allowed is tax and tips)
For more information about eligibility requirements for membership please review our website, or call 800 822 7204