Over the past couple of years during our recession we have seen over 83,000 businesses declare bankruptcy as a result of the financial burdens upon everyone. However, the businesses that have made it so far haven’t gone unchanged, they have all made some changes to their company whether they were small changes or drastic ones.
One owner of a telecom expense management and software team changed some terms in his customer agreements and the way they write up their contracts from now on.
Many businesses that didn’t have a planned strategy for this recession are now locking in a planned strategy should this event occur again in their future. They are setting up every precaution that they can in order to survive through another recession, while continuing to keep their overall costs down even through good economic times.
Several businesses through this economic downturn have learned to be more strict on their credit lending policies. Being more strict on this can ultimately save your business a lot of headaches, worry, and money in the future should another recession occur or this one that we’re in continue on.
Spend wisely. If you’re going to expand operations, purchase new equipment or hire workers in a downturn, make sure there’s a reasonable amount of profit potential. “We don’t want these companies to say, ‘Now that times are better, I can start spending frivolously again,'” Kuratko says. “The decisions you’re making today should either provide a return today or benefit you going forward.”