To survive as an entrepreneur in this difficult economic climate, you will probably be faced with difficult choices.
1. Cut your workforce
It’s never an easy thing to do, but there are times when laying off employees is unavoidable. For most companies, an economic slowdown leads to reduced workloads and fewer resources to support the current workforce.
If you decide to go this route, visit your state’s Department of Labor website to make sure you’re in compliance with all state labor laws and regulations.
2. Reduction of insurance provided by the employer
Assuming you offer employer-paid benefits, a more palatable solution for reducing employee costs is to reduce benefits for your full-time employees. Some options:
A. Eliminate less critical insurance (such as dental and visual coverage);
B. Reduce health insurance costs by 30% or more by using higher deductibles and/or co-payments
Seek advice from your insurance agent to discuss alternatives.
3. Falling advertising costs
While advertisers will warn you that this is the worst possible time to cut your advertising budget, think about the source of that advice.
While it makes the most sense in your particular industry to keep your advertising money working, only you are in the best position to make that decision.
4. Increase or decrease opening hours
If you run a service business from your home, extending your workday can be an easy way to catch those few extra customers who call outside of normal hours.
On the other hand, if your business is a retail property, the required cost of having at least one employee at the property may make extended hours an illogical choice (unless there is sufficient demand from shoppers during those hours). Instead, closing early and opening late (assuming these hours are slower than average) will improve your profits.
The point here is to maximize your return on investment. You’ll have to do the math to see which option makes the most sense for your business.
This too shall pass
Tough economic times force us all to make unpleasant choices. Consider all options carefully before making a decision. The main goal should be the survival of your business until the current economic storm passes.
Cost savings for small businesses every
World News,Next Big Thing in Public Knowledg
#Cost #savings #small #businesses
