|Lessons for Stabilizing Your Small Business|
|Written by Shawna Ruppert|
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Many small businesses have to resort to laying off employees or cutting benefits during tough economic times; however, there are several ways to stabilize a business to avoid common pitfalls in recession. Depending on the products or services offered, a company should build a firm line.
For example, if a company typically keeps Product A in stock but sees a dramatic decrease in sales of this product when tough times hit, Product A should be removed from the inventory. The product or service can always be reestablished when the economy returns to normal. By eliminating fruitless products, a small business can save significant overhead costs.
While it might seem unwise to spend more money in a poor economy, there are circumstances that simply force a business to find new ways of reaching customers. If a company operates only from a store site and has a website just for informational purposes, a small business should find a means to begin sales online. This allows the company to reach consumers all over the world, which will eventually pay off. Also, by creating a retail outlet on the internet, some products can be solely sold through the website, which can drastically reduce overhead as well.
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