It can be scary to watch established businesses closing their doors because they can’t survive the recent economic changes. You probably personally know the owners of some of the businesses that are closing up, not for the night, but for good. You want to be just another business holding out to the bitter end just to end up closing your doors. You want to be like the big kids, like Walmart and other companies, that are not only staying open, but growing despite the current economy. So how are the big kids playing different now? Restructuring, reducing costs, and increasing income are helping companies of all sizes to stay in the game when income drops. Some of the following can be done to stay open when other businesses are closing down:
- Reduce inventory-go to drop shipping, limited back stock, order efficiency
- Shorten hours of operation-closing once a week, open later, close earlier
- Change employee hours-lessen hours of higher wage staff, increase hours of lower wage staff
- Reduce benefits-eliminate benefits, choose less expensive options
- Cut all wages by a percentage-lower hourly pay, cut salary
- Merge with another company-join with a related, but non-competing company
- Cross train-reduce the number of employees by cross training qualified employees
- Change target audience-seek new potential customers that the economy has created
With the high unemployment rate, most employees would rather take cuts in pay, loss of benefits, and reduced hours instead of being unemployed and starting over in a new field or at a new company. In the event an employee does leave, there are so many unemployed workers that an open position won’t be open for long.
For items like office supplies and maintenance supplies, look into lower prices and smaller orders even if you no longer receive free delivery.
While reducing costs and restructuring, continue to work on building business. If you haven’t stepped onto the Internet highway, put on your seat belt and get ready to merge in. To get up to speed quickly and learn how a website can help you generate income for your business, go to the experts at Karma Snack.