How Businesses Can Avid the Worst of a Recession
Most businesses are affected by the recession in some way or another, they don't always have to be affected by it in a direct way. Their suppliers could have been hit which in turn means they, or the people they supply to might be finding it difficult to pay them.
Most companies try to cut costs as much as possible when it comes to seeing out a difficult period in the economy, but there are others who are more bullish and try to spend their way out of downturns.
What is the right answer to how businesses should approach the economy?
If a business is more aggressive when it comes to the economy and ups their marketing activity together with their spending they may be able to take a leap ahead of their competition, especially if their competition is cutting back.
Sometimes a business might cut back because of nothing more than speculation, rather than actually looking at the numbers and basing spending decisions on whether demand for their products or services is falling.
Many of the reasons why the economy performs so poorly are because businesses lose confidence due to so much speculation in the media. In some cases if companies were to ignore the speculation and push ahead with expansion plans then they would push themselves ahead of those who are being conservative with their spending.
A case study of a business that could be affected by the recession
Some businesses are more heavily hit by the recession than others because they rely on the confidence and spending habits of other businesses. Take for example the serviced apartment market in London.
In good economic times London's business travel market thrives as business people visit the city to conduct deals and to start work in new companies.
When times are bad there is less travel from businesses as they don't have large travel budgets and are unsure about whether to make plans to travel to conduct deals.
Serviced apartment companies face the brunt of any fall in the number of business travellers quite significantly because a large amount of their bookings come from the business sector.
These businesses however are a good example of companies that can further develop in order to survive the recession. Apartment companies can build better relationships with customers, be more aggressive with advertising and market to existing customers to try and avoid a large slump in trade.
The recession is not something that should be taken lightly, however there are ways that companies can start to avoid getting stuck in a downturn without a way out.
Most companies try to cut costs as much as possible when it comes to seeing out a difficult period in the economy, but there are others who are more bullish and try to spend their way out of downturns.
What is the right answer to how businesses should approach the economy?
If a business is more aggressive when it comes to the economy and ups their marketing activity together with their spending they may be able to take a leap ahead of their competition, especially if their competition is cutting back.
Sometimes a business might cut back because of nothing more than speculation, rather than actually looking at the numbers and basing spending decisions on whether demand for their products or services is falling.
Many of the reasons why the economy performs so poorly are because businesses lose confidence due to so much speculation in the media. In some cases if companies were to ignore the speculation and push ahead with expansion plans then they would push themselves ahead of those who are being conservative with their spending.
A case study of a business that could be affected by the recession
Some businesses are more heavily hit by the recession than others because they rely on the confidence and spending habits of other businesses. Take for example the serviced apartment market in London.
In good economic times London's business travel market thrives as business people visit the city to conduct deals and to start work in new companies.
When times are bad there is less travel from businesses as they don't have large travel budgets and are unsure about whether to make plans to travel to conduct deals.
Serviced apartment companies face the brunt of any fall in the number of business travellers quite significantly because a large amount of their bookings come from the business sector.
These businesses however are a good example of companies that can further develop in order to survive the recession. Apartment companies can build better relationships with customers, be more aggressive with advertising and market to existing customers to try and avoid a large slump in trade.
The recession is not something that should be taken lightly, however there are ways that companies can start to avoid getting stuck in a downturn without a way out.
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