These days it's not that easy to start a business and keep it running due to the recession we have encountered recently. As a way to help businesses survive, these are some of the things businesses have done to weather the storm:
- Cut back on the number of stores they have. Instead, stores such as Blockbuster have decided to downsize and put their stores on the internet instead. As a result, overhead costs are reduced, giving a higher profit.
- Keeping inventory low, and only selling highest selling items in the store. In addition, more special ordering is in place. Incentives like offering more discounts for large purchases helps bring in more customers.
- Keeping unnecessary costs down like cutting back on payroll and/or advertising, can help with the bottom line. Also understanding what their financial numbers mean makes financial decisions easier.
- Appeal to customers with their new "storefront"-the internet. Remember when you had an actual storefront where you had to change it periodically so that you would gain new customers? The internet is like your new storefront. A business webpage with a great look is vital to keeping business alive. Social networking and the web is used much more by customers.
- Make sure you update your accounting systems to a low cost system that will grow with your business.
Copyright Jeanine Pfeiffer