How Your Practice Can Beat The Recession
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Key Concept Family businesses tend to outperform companies with more dispersed ownership structures during economic downturns. They set the bar high for capital expenditure. Family businesses tend only to make capital investments in very strong projects. They carry little debt. They acquire fewer and smaller companies.
6 Companies Thriving In The Recession
Generally, family companies prefer organic growth and joint venture or partnership deals. They avoid the risks associated with large-scale acquisitions. They diversify. A large number of family groups, for example, Cargill, Koch Industries, Tata and LG, are far more diversified than the average corporation. CEOs of family companies told the researchers that diversification has become a key way to protect family wealth as recessions have become deeper and more frequent. They are more international. Family companies generate more sales abroad than other companies.
Like diversification, this means they avoid putting all their eggs in one basket and hence spread risks. Family-run businesses tend to have lower staff turnover rates than other companies. They focus on creating a culture of commitment and purpose, avoiding layoffs during downturns, promoting from within and investing in employee development.
Focus on Disloyal Customers
Does hiring seem like a distant dream or an irrelevant business practice right now? Yet you still need to maintain a minimum workforce to avoid losing customers. Quality applicants are out there in force for employers willing to carefully screen a large pool, says Miller. What if your finances are such that you must reduce headcount, say for the first time in years, or ever?
If your competition is dialing back on marketing, it could be a perfect opportunity to gain market share with a smart and focused marketing campaign. What if they gave a recession and nobody came? All of the things suggested bolstering digital, improving interaction, etc are things one should do regardless.
- Nothing But the Best.
- Card Accounts.
- LOrchestre noir: Enquête sur les réseaux néo-fascistes (HISTOIRE) (French Edition).
- Surviving a Recession: Seven Lessons from Family Businesses | Ideas for Leaders.
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If the thought is that businesses should put off expansion, then they have to weigh the consequences of possibly being wrong. The first question is to truly isolate the effect of Millennials taking their shopping dollars online and traditional brick and mortar retailers are just not fast enough with this trend vs.
However, wherever possible, they should protect their premiums for their margin-building SKUs. They also need to protect their brand for when the market does recover. It is much harder to gain brand equity than it is to erode it.
10 Rules for Surviving the Recession
Finally, although I am no expert, managing cash flows and balance sheets would be the next most important in order to ensure that they do not take massive hits when the bottom-out occurs. Do you agree that retailers especially brick and mortar are doing enough to prepare for the next recession? View Results.
Skip to main content. What should retailers and brands do now about a possible coming recession? Braintrust "The tempting play heading into a recession is to show signs of retreat But the smart play may be very different. Connect with:. Downturns in business usually sort out the good from the bad.
This is not necessarily a bad thing, except for the employees who will suffer from poor management, as when things pick up again the strongest and best are in position to benefit from it and new players will then come into the market.
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In recessionary times, good retailers are efficient, smart and continue to invest in technology and developments that make sure they are the ones that survive. Tightening up on inventory and improving your supply chain is an easy way to generate savings in costs and improve sales through better availability. Bob Andersen Sr Writer, Brandbuilder