Although governments across the globe are beginning to appreciate the value the small businesses bring to an economy, this realization has come at a time when such ventures are experiencing immense financial difficulty. From 2008-2010 during the years of global recession between 2008 and 2010, a significant number of small businesses were lost to an unforgiving economic climate, which in turn led to a stagnated employment sector and diminished productivity.
This experience has taught invaluable lessons to firms that survived, however, with the result being that a number of small businesses are now far better equipped to consolidate their venture as the economy falters. The key to remaining solvent during a recession lies in implementing an integrated strategy for growth, and one that strives to cut costs while also laying foundations for the creation of new and independent revenue streams.
Cost Cutting: Where to Make Significant Financial Savings for Your Business
When addressing opportunities to make financial savings, the first thing to ensure is that your potential strategies do not compromise the quality of your product or service. It is important to focus on non-strategic or operational aspects of your business when looking to reduce costs, as this can be done without impacting upon your core business vision. Your energy usage and choice of supplier provide excellent examples of where money can be saved effectively, so long as you are patient and willing to compare a comprehensive range of business prices.
While you are implementing these money saving strategies, however the sharper business minds should also be working hard to diversify a venture and create sustainable revenue streams. This may present numerous options depending on the exact nature of your business, but a key example would be for a traditional retail outlet to develop a remote store front and sell their products online to a global consumer base. This may not seem like the most innovative business solution, but it is a simple method through which to add value to a commercial venture.
Some companies have tried to beat the economic downturn by consolidating with other companies. It may seem daunting joining your business in partnership with a competitor but if the both of you are struggling, why not combine the workforce and skill sets offered so the both of you come out on top? After finances have settled and the economy has become stable, each firm can go its separate way to carry on successfully as a solo enterprise.
The Bottom Line
While the current economic climate may be largely oppressive, there remains ample opportunity for businesses to consolidate and grow their operation with. By making a commitment to learn from your experiences when trading during a recession and striving to save money while developing additional revenue streams, it is possible to break free from the constraints of financial hardship and experience organic commercial growth.
Author Bio: This post was contributed by Tom Cafferkey of Business Electric. To discover how your business can access a more affordable energy supply, visit us today!