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Run Leaner
By Daphne | February 4, 2008
Some of the tips that are available to small business leaders about surviving a recession can really apply to our own personal finances.
If you keep your operating costs down lower than in previous years then you will have a chance to survive. Over the weekend, The Crain’s Small Business Report and one of his small business tips for a small business owner was that you could run leaner in order to survive a recession.
Keep inventory down. Instead of buying extra items just because you can for non- necessities or things that may not hold up well before you use them, buy only a limited amount. Stock up on soap toilet paper or detergent. Don’t stock up on ice cream or cereal.
Call in favors. Let’s say a friend owes you a favor and you need help doing something ask the friend for help. Or if a friend owes you money and you need something done, work out a deal to have the person repay you as a service/trade.
Ask people to repay their debts. Though this can be a touchy situation if people are having difficulty with money themselves. Money isn’t tight for everyone and if you have loaned money to someone in the past and you are need, ask for a loan repayment. You may not get it but you could call in a favor.
Also, purchase less or decide that you want to put off buying non necessities until later. Even though you can afford the purchase - really without going into debt or diverting money from savings or investments. This doesn’t relate to inventory but more like upgrades to your home or cell phone or MP3 player.
If you wanted to add something to your home, and you are unsure of the current economy in your area, then hold off on the purchase and hold on to your cash.
Topics: February 2008 |