Thursday, January 29, 2009

How to Get Through to a Bad Economy: be Your Own Boss

If you are a business man that is just starting or even one that is already pushing through nicely, you may be wary about how our economic problems could affect your ventures. What are the ways with which you can protect yourself and your investments against bad economy and still be your own boss?

A step that you may need to take in your efforts to fight a bad economy is to examine your operational expenses and jot down the things that cost you money according to what are essential and what are merely for convenience.

It may even open your eyes and make you realize that you buy things that are entirely not essential and are merely for luxury. The key is to decide which should be preserved, which should be edited, which can be delayed, and which should be terminated.

Next, examine your products and services. If you have items that are not making money, maybe it is about time to erase them away instead of investing more in them. You may also earn extra by selling stuff that are not needed or those that come in excess; for example, office furniture and other gears and equipment. If your office space is wide and you think it will not effect to your and your staff’s inconvenience if you will move to a smaller office, then it can also be a good thing to consider.

Another option would be to rent out space to other companies or entities. Also, you should measure your human resources needs. Are there places that can be eliminated? Is it possible to reduce staff wages and benefits? Can you let go of some people who are not victorious enough or required enough to your company’s efficiency?

Instead of hiring more people, maybe you can hire independent contractors or freelancers, those who work at their own home, to save on offering special incentives ordinarily accorded to regular employees.

Moreover, think about this: Can you be your own boss and reduce you own salary? Cost cutting in businesses is a common exercise that ranges from employee number cut down to use less light at work areas and less equipment utilized to save on maintenance costs such as electricity. If it is possible, you should also consider cutting down prices to attract more customers and clients and to have more money flowing in.

If you have existing debts, you may call your creditors and bank loan officers and make a deal with them to lower your monthly payments or to reconstruct or consolidate your debts. You can consider delaying payment of your accounts and other payables but make sure that you do not incur monetary penalties for being late on due dates.

To advertise your business in a less costly way during a bad economy, you can make use of the online community to set up advertisements and thus get more people to your products and services.

Some of the avenues that you can utilize are blogs, where you can buy text links that would directly lead to your company’s Web site, or forums where you can join and put on some good words and recommendations for you company. The possibilities to be your own boss are endless.

By : Chris Bernardo