Tough Economy, Part II: Employee Solutions

Greetings!

So how can a business save money during a tough economy? Speak with the business accountant, and see what other departments may need to feel the heat first. Chances are, there are some expenditures that can be cut. The real answer however, is to look towards increasing revenue. Begin to think in terms of monthly and quarterly frames. Take one to three months at a time, so as not to kill the big picture.

Bring top producers in the company together from departments across the board to brainstorm. The department supervisors and key employees are most knowledgeable about systems that are place, extraneous costs and more importantly, the things that can increase efficiency, productivity and revenue.

Finally, maintain - or even improve, employee moral. The economy is hitting businesses and employees hard; employees don't need to be reminded daily that the business may be suffering or that they are in danger of losing their jobs. Instead, what can employees do to help?

Frustrated, fearful employees will not be productive, but they can offer assistance and ideas about improvements. Hours may need to be cut, production could be revamped, or perhaps a few unpaid vacation days per employee.

Don't cut the areas that make the company money - like marketing and advertising - and please don't cancel the holiday gatherings!

Tough Economy, Part I: Don't Cut Marketing!

Greetings,

Many times, it's the marketing and advertising budgets that suffer when business belts begin to tighten. Unfortunately, many businesses lose that "edge", that constant, competitive advertising gives them in the community. They begin to lose key placement that's been earned over time. Presence begins to dwindle in the eyes of existing and potential clients.

Once marketing and advertising costs have been cut and business begins to go south, the blame continues to rest with the economy in the eyes of the business owner. But is it really the economy, or the fact that the amount of time, effort and money the business once placed into the marketing arena has now been greatly reduced or cut altogether?

A little of both. It's true that businesses must spend money to make money, and that a decent portion of revenues need to remain with the marketing and advertising departments. When the market bounces back, your business will reap the rewards with increasing revenues, and best of all, your business won't be playing "catch-up".