What will help a business survive?

ayshakhatunasha

Over the past two decades, we have experienced many economic crises. Some of them have radically reformatted markets and businesses, while others have deeply affected only certain market segments. But each crisis changes people's consumer behavior: people panic and are afraid to spend money in the face of an uncertain future.

What's the bottom line?

Businesses are seeing sales decline, revenue and profits are shrinking. Companies are starting to cut costs and reduce employee salaries, and employees, in turn, are starting to make fewer purchases from businesses. A vicious circle.


5 Tips for Business During the Crisis
HOW TO COP WITH A CRISIS
#1. LEARN!

Use the opportunity to invest your virtual phone number service new free time in yourself and the company. Read, watch videos and listen to books. Monitor what new things people like you are doing in other countries.

After the crisis passes, competition in the market will increase and money will become more difficult to come by.

This is the best time to prepare for the new world.

Learning is light!

  Advice for business during the crisis
#2: IMPROVE YOUR BUSINESS MODEL

Look at your product from a different angle. Consider whether you can simplify business processes, expand the portrait of the target client and launch a more relevant product that the client needs right now.

And don't forget to prepare a plan "B" - a document that will describe your actions if the crisis situation worsens.

5 Tips for Business During the Crisis
#3. WORK WITH A TEAM

Pay more attention to working with employees. On the one hand, this is necessary to maintain the team, and on the other, to optimize costs. From 30% to 85% of the company's expenses are personnel costs, which must be closely managed in times of crisis.

Many employees will have to take a pay cut. It is important to be honest with the team about the state of affairs in the company, how this may affect their earnings, and outline the prospects for various scenarios.



what will help business survive
#4. OPTIMIZE COSTS

The main objectives of this point are as follows:

— Convert some of the fixed costs into variable ones. This could be a reduction in the salary part and an increase in the bonus part. It is better to reduce all other bonuses for the staff during the crisis.

— Try to reduce some of the fixed costs. This could be a refusal of service services, water delivery, office supplies, rent holidays , etc.

— When optimizing costs, ask yourself: will this or that expense help bring in profit now? If yes, use it. If not, put it on stop.

what will help business survive
#5. PREPARE FOR THE WORST CASE

Plan your work with the idea that the crisis will not pass in a month! Now no one can predict what will happen tomorrow. The level of uncertainty is very high. The situation can only get worse, and you must be prepared for this! ( It is better to be pleasantly surprised by positive changes than to suffer from unfulfilled expectations ).

Advice for business during the crisis
Before making decisions, find out about the state of the labor market. How to pay adequately and optimize personnel costs.