A lot of people would agree to the fact that the Indian economy is not at a place where it should be right now and this is affecting business in every sector. But the small businesses are mostly affected in this situation as generally they don’t have the reserves and turns vulnerable. Therefore, through this blog, we are trying to suggest some solutions to the small businesses to face and then come out stronger in this situation.
- Reassess your situation
The first step in this situation is reassessment. So, the time when you realize that the economy is stressed you need to stop everything first and take a step back to have another look at your business. You not just need to understand the situation but also do a detailed study of your business so that you can make a proper plan. In this situation, you should generally modify your long-term plans with short-term and medium-term plans.
- Avoid overhead
Is one of the most important yet the most difficult thing to do while the economy is falling. If we reduce the operation expense, it will automatically help the business in operating income. This can be easily done by the HR, just by evaluating the efficiency of the employees by the previous work record and also by detailed analysis of the employees without whom all the workload can be handled.
- Use freelancers
The economy is struggling or headed towards the downward slope, we usually avoid overheads to help the business in operating income. And there comes the role of freelancers. Hiring freelancers are the smartest move during this period as we reduce the overhead we need some people who can manage their work and help the company. The best way is to work on a contract basis with them.
- Reduce other fixed expenses
Fixed expenses like electricity bills, rent, etc. are very small things to focus on when you are running a business but it is one of the smartest steps a businessman takes as every penny counts for them. So these small steps will also be very effective when the economy is down.
- Optimize sales and marketing
An economy with a downward slope, you need to enhance your sales and marketing efforts as the demand for the product and services will decrease; demanding extra effort towards the sales and marketing of the company. To get out of this situation you need to first revise your target list which may let you know who all are less affected by the situation and need your product or services like targeting specific geography or sector of the market.
- Manage your fund effectively
The fund is the most important aspect when talking about a struggling economy. Decision making is very crucial during this period. Also, any company’s performance depends upon not just the decision made during that period but also the person who’s deciding as it navigates the organization. You don’t need to use all the funds instead of always need to save funds which can be used during a recession. So, the person making the decision must be wise enough to understand this! Also, during economic downfall invest the fund which can give you a good return.
Small businesses or start-ups can survive the struggling economy just by analyzing your business and planning accordingly.