30 Sep 2021, 10:59 — 6 min read
Recently, many in business and job sector must have felt that we are going through an economic slowdown. All are hoping that this will be over soon. However, a slowdown cannot disappear suddenly. Let's see what we can do to pass this difficult time and bounce back to normal.
1. Limit your unwanted expenses and overheads
In business or daily life, to maintain a particular lifestyle there are some expenses that can be avoided or cut down. It can be anything from electricity bill, movie tickets, eating out, birthday parties or marriages etc. It can be spending on online mega sales or mall offers, where you fall for these so called offers and end up buying unwanted things. If you calculate monthly expenses after recreation and non-productive activities, that will add up to a big number. You can start saving with small steps which will give big results in future.
2. Do not stock up much
Generally, demand for everything comes down in an economic slowdown. We saw recently that auto sector was hit badly and companies like Maruti had almost 35% lesser sales in a month. When we stock anything, our capital gets stuck and due to slow demand stock becomes idle for a long time. You lose both ways! You are not able to clear the stock and also your money gets stuck so you can't connect with new vendors or new products. If you have cash in hand, you can always buy whatever you want and you also have greater bargaining power. In a slowdown, cash is king, so rather than stocking in bulk, stock smartly and keep enough liquidity around.
3. Do not try to fall for inappropriate investment schemes / higher interest rates
If you have been smart enough and you have got adequate liquidity, then people might approach you with some investment schemes or higher interest return plans. Please stay away from them! If it is slowdown in economy, then it is for everyone.
One can do very good business with your money and give you returns which are abnormally higher! In slowdown, real estate, auto, banking and almost every sector is struggling. So don't get misled and part with your hard-earned money.
4. Stay away from speculative stock market trades and sports betting
Recently, I have come across several people who have indulged in speculative spending. What their thinking is - if business is slow and one is not making enough money, then let's go for stock market or betting. I am not against investing in stock market, but speculative trades and betting can never help anyone. I have seen many people losing everything they have due to certain unwise decisions! If you are not regular with delivery-based stock market investments, then just to cover your profits don't fall for speculative trades or betting.
5. You can opt to sell for lowered profit margins
Everyone wants to save their money. In slowdown, this saving phenomena becomes very important for buyers. So as a business owner, if you want to survive this difficult period, then you have to learn to offer discounts. To sell something is more important than not selling anything at all. Customers will explore every corner of the market to save whatever they can. So, maintain good relations with customers and do offer them discounts.
6. Don't go for loans; ask your suppliers for bigger credit period
If you require a loan just to meet your business needs, then stay away from loans. In slowdowns you will get calls from so many sales representatives for loans that you might easily consider it. Loans are not bad, but when business is very slow and you have to pay high interests, it will not add up. In business there is always trust and relations between supplier and vendor. If you have a good reputation and you have never defaulted in your commitments towards your vendors, then they will easily consider you for a bigger credit period. Everyone wants their money to be safe, so rather than selling materials to a new vendor, supplier will always prefer an older and trustworthy vendor.
7. Slowdown is a matter of time, so don't search for a new solution everyday
Economic slowdown is a big and complex thing. There are many aspects involved which can directly or indirectly affect economic slowdown. Everyday talking about slowdown on social media and discussing about it in free time won't help at all. Rather than wasting your time in non-productive things like this you can go for activities like stock taking, discount sale or just talk with your suppliers and customers - this will improve your business.
8. Spend time with your family/ friends and talk with them
This is the best thing one should do every day. Talking with your family and friends helps to release stress. If you have any problems related to your business, share it with someone and don't stop communicating. Just a small talk with your parents or spouse, playing with your child or sharing a joke with your friend will have magical effect on your mind and body. You will stay away from negative thoughts and will feel a sense of renewed positive energy.
These are some of the steps one can follow to fight the economic slowdown. Whatever happens, keep in mind that you have to overcome this time. Ups and downs are part of business, so don’t let anything dishearten you.
To explore business opportunities, link with me by clicking on the 'Connect' button on my eBiz Card.
Image source: pexels
Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the views, official policy or position of GlobalLinker.
Posted byJaimin Rasiklal Doshi
Hi Everyone! This is Jaimin Doshi. We are the manufacturer and exporters of Cloth bags, carry bags, shopping bags, packing bags and much more..As an owner of my company I have to...