How Business Owners Can Survive a Recession

Make Strategic Cuts Early On

An Entrepreneur.com article makes an excellent argument for making small cuts early on in a recession. The article reminds readers that cutting monthly costs down by $5,000 to $10,000 can mean the difference between saving someone’s job or letting them go.

Keep Cash

Having cash on hand can mean the difference between a business surviving a recession or going under. Unfortunately, many business owners don’t hang on to their cash and wind up paying for it once a recession hits. A lack of cash can mean difficulty making payroll, as well as trouble paying vendors and other important people.

Maintain Your Marketing Efforts

An article on The Balance Small Business site reminds business owners that they need to continue marketing during a downturn, even though they may feel tempted to cut down or even shut down their marketing efforts.

Final Words

It’s important that business leaders face a recession with sound strategies and early action if they want their business to survive the downturn. Making small cuts, conserving cash and continuing with their marketing efforts are all small ways that a business can weather a financial storm. The business owner who implements one or more of these strategies stands a better chance of surviving a recession that the business owner who doesn’t.

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John Jellinek is the President of the private equity investment firm Jelco Ventures, Inc. John Founded the company in 1971 | http://johnjellinek.com/

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John Jellinek

John Jellinek

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John Jellinek is the President of the private equity investment firm Jelco Ventures, Inc. John Founded the company in 1971 | http://johnjellinek.com/