Ways To Prepare Your Business For The Coming Recession

Ways To Prepare Your Business For The Coming Recession

The current economy is in a bit of a rut, and businesses of all sizes are feeling the pinch. Whether you’re a small business just starting out or an established company with a stable client base, there’s no doubt that the recession is going to hit you hard. Here are some tips on how to prepare your business for the coming recession.

Review Your Business Financials

In order to be prepared for the recession, businesses must review their financials. This will help identify any areas of weakness and make necessary adjustments. In addition, businesses should also be implementing cost-saving measures in order to maximize profits and protect against falling revenue.

Reduce Your Current Workforce

The recession is a fact of life, and unless you’re prepared for it, your business will suffer. Here are four ways to reduce your workforce in preparation for the Survive coming recession: Automate as much as possible. This reduces costs and makes your business more efficient.  Simplify your processes. This makes your business easier to run and can save you time and money. Reduce overhead costs. This will help preserve profits and keep your business afloat during tough times. Cut back on marketing expenditures. These are often expensive, but they don’t have to be if you use other methods to promote your business.

Prepare Your Tax Returns

If you own a business, now is the time to start preparing your taxes. Many small businesses will see a significant drop in income in 2009 as the recession takes hold. Here are a few tips on how to prepare your taxes: Keep accurate records of all income and expenses. This will help you track your progress and make deductions where appropriate. Compare your total income against taxable brackets to determine if you will need to file for an exemption or adjusted gross income below certain thresholds. Review depreciation schedules and make any necessary changes to reflect the new tax rates. Review employee benefits schemes and plan for possible changes in coverage or cost. File quarterly estimated taxes if you have federal Income Tax returns or semi-annual estimated taxes if you have state Income Tax returns. Do not wait until the last minute to file; this can result in penalties and interest charges that can be costly in tough economic times.

Increase Sales and Marketing Activity

Over the last decade, businesses have been increasing their marketing and sales efforts in order to stay afloat during tough economic times. According to a recent study by the American Marketing Association, nearly 60% of businesses are planning to increase advertising and marketing budgets in 2009. However, even with increased marketing spending, many small businesses will still go out of business during recessionary periods.

Ways To Prepare Your Business For The Coming Recession
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