These days, the economy is taking its turn for the worse. Different countries are experiencing the effects of this simple fact. All around the world, businesses are struggling to survive by cutting costs. Sadly, not every businesses makes it out alive. No matter how they try to lower down their costs, some could not really make ends meet. Among all the different types of businesses, small businesses are the one that’s really taking their toll in this down economy. Since small businesses generally have fewer resources, they are the ones who are really feeling the negative effects of the recession.
Because of this, a lot of small businesses turn to loans and other types of debts to suffice their financial needs. While other can make it through with the help of their debts, others are not that lucky. Sadly, having debts is also the same reason why most businesses spiral down.
The key to having a successful business is to avoid debt. Although this may seem like an instant solution for emergency financial problems. You will be facing more problems in the future. For one, debts come with interests, making it harder for borrowers to pay off their debts. The longer it will take for them to pay off the debt, the higher the charges and penalties they will have to pay.
During the recession, avoiding debt should be the utmost priority of small businesses. No matter how impossible this may seem, it can be done with the help of these following tips :
- Turn off appliances when not in use. This is the most basic saving tip that has been used for ages now and yet this tip has never lost its touch. In fact, ensuring that all appliances, which are not in use, are turned off can lower the electric bill of a business by 25%. Most small businesses leave their computers open overnight. This actually takes up half of their electric bill. Turn off the computers after work hours and you’ll be surprised about how much you can save.
- Do presentations by using the Internet. Most small businesses do presentations personally. If you take a look at it, this can be quite costly because of the fare, accommodation and all other extra charges. Today, small businesses are now given the chance to take advantage of Internet based technologies, such as web conferencing and many more. By doing online presentation to customers, the company can get to save a lot of money.
- Opt for a greener alternative. These days, energy-efficient technology are made available for businesses. With the help of this technology, companies can get to save money by extending the life span of computers, phone systems as well as other technologies. The government offers some sort of tax benefits to companies using green technology and the best thing about this is, you are given the chance to help save the planet.
- Cut down on the number of phone lines in the office. Do you have another phone line for faxes? Well, guess what? You can take that down because you can now configure your office PC’s to deliver and receive faxes! This can be done with the help of a small business server as well as the Windows XP OS.
- Opt for freelancers. There are some tasks that are not designed to be done during the entire office hours. For example, accounting can be done for about once or twice a week. For jobs like these, hiring a freelancer is the best way to go.
With these tips, any small business can get to lower their costs, save money and avoid debts. Now, who can say that we can’t do anything about the down economy?