Recession's Effects on Your Business and How to Control them.

The impact of recession can be very damaging not only to households but to businesses as well. Learn about these effects of recession and prevent your business from succumbing into its deadly claws.


1. Customer scarcity

When you have too few customers, consequently, your income suffers as well. The rising prices make customers too picky or less interested in giving you business. Existing customers may also be re-assessing their spending, which results in fewer orders for you.

So what do you do? How about changing your customer acquisition techniques?

Have you tried online marketing? This may not be suitable to all businesses but there's no harm in considering it. Online marketing has many forms and doing your assignment will prove to be helpful in determining which technique will benefit most your business.


2. Ridiculously high credit card debt

Inflation is likely to happen during inflation, which means your expenses can be higher than normal. If you have been relying on your credit card for payments, you now need to monitor your spending really closely. This is because losing track of your expenses can surprise you one day when you no longer have enough funds to pay off all your debt. You do not want to have problem with your credit card because a bad rating will not be of great help when you are trying to obtain approval for loans.

» Continue Reading: Recession's Effects on Your Business and How to Control them.

The credit crunchies early UK budget report

You can follow developments fairly live on twitter.com #budget09 and #budget. There is a budget summary from the BBC.

The truth of matters is that the economy is shrinking and so there is a squeeze going on. This budget while not very dramatic mirrors this.

There was a serious economic situation like this after the Great War (World War One) and the first country out of that got ther by spending hard and giving away bread. Also they grew the army to make jobs. That was Germany and e all know how that ended up.

Have your say.

Sound Advice for Times of Hardship

Some sound advice when times are hard - be there.

Lean on me when you're not strong and I'll be your friend - I'll help you carry on. For, it won't be long until I'll need someone to lean on.

Wishing you peace.

How should the smart person finance a business during a credit crunch?

If you are thinking of starting a business during this (or any other) credit crunch then you are going to be doing so with less resources thn at other times. That's not to say you are crazy (far from it) but you do have to be damn good at planning.

I've just recently found a story on online.wsj.com - "Credit Woes Hit Home" which looks at how business credit card facilities are being stripped back just when they are needed most.

So a question arises: how should the smart person finance a business during a credit crunch?

For example would Micro Finance be the way to go? If so how much might the "average Joe" hope to raise?

Could you start with a limited and sell shares? How would that work and how far could you go?

What could you advertising support that is not usually supported that way?

How can you innovate with this? What can you do without, outsource, cross-promote, co-work and co-brand? Could you exchange tasks with another company so that you both work more fully to your skills maybe without money?

What about trade exchanges?

It's a credit crunch folks and the innovators come out ahead. What innovative ideas can you share?