Running a successful business in a recession is not always easy. You must be creative in order to save money. In these times, it is merely about following Darwin’s principle “survival of the fittest”.
Many entrepreneurs have begun to simply sacrifice nonessential products and services while they run their business. Of course, this is part of running a successful business even in the best of economic times. But there are other approaches that allow entrepreneurs to successfully operate their business and avoid unnecessary debt.
One idea that entrepreneurs do not often consider is bartering for services to increase brand recognition. The article Tips to Avoiding Startup Debt: Limit Debt and Grow Your Startup discusses that concept briefly and how it can cut back on expenses. However, another benefit it fails to mention is that services that are exchanged through bartering do not legally need to be reported to the IRS (other countries may have different tax laws). Saving on taxes is obviously an advantage in any economy.
This article also mentions that it is also a good idea to share costs with neighboring businesses when necessary. This can be a more efficient means of saving money for everyone, because you may be eligible for group discounts if you all purchase services in bulk.
These tips may be encouraging for new businesses, but entrepreneurs must remember that they will always have to bite the bullet and cut back on expenditures. Lenders throughout the world have become very stingy with their money and even the best businesses may have a hard time getting funding.
As creative as you may try to be gaming the system, you must always be willing to accept that sacrifices will need to be made. The current recession may actually be learning experience for entrepreneurs all over the world. If we can operate our businesses leaner and more efficiently now, we will be better positioned to successfully lead market during the recovery.