Cost of Living is Increasing, Consumers are Cutting Back, Is Your Business Effected?

Cost of living is getting high thanks to the higher cost of feul, wheat, and corn. These are staples and necessesities for families and they have to cover the cost of these items, which means they have less for luxeries. Some businesses are finding it harder to cover costs and meet their liabilities.

Restaurants are declaring Chapter 11.

People are getting dog food from food banks and looking for discount vets because they can't afford their animals.

Toyota and Ford are reporting lower sales.

GM is closing 4 plants and considering cancelling production of the Hummer.

Jobless Rate Increases - 49 000 jobs cut nationwide.

So if the big guys are having trouble how can the smaller guy survive? Here are some ideas:

1. Get your financing and books under control to ensure you won't have a cash flow emergency.

2. Find another use for your product and service to increase your target market. Ask yourself, what other ways can my product or service be utilized? Get creative and brain storm with friends and family.

3. Add other products and services to your business, preferrably ones with high margins. Make sure that the new products complement your presents products. You don't want to go out and find a new target market, you want to offer your present target market more.

4. Reduce your inventories to hold less items that don't sell very well. Can you downsize your lease space? Perhaps sublet a piece of your footprint to a complimentary business but not a direct competitor? For example Postal Outlets in Drug Stores. If you have extra storage space you could warehouse items for anther company to help pay the rent.

5. Talk to your suppliers about offering drop shipping or custom order only items instead of inventoring it and having to be out of pocket.

Where can you cut costs? Where can you expand your market share? The goal here is to make it through a recession period with your business entact, which means cutting back and cutting expenses. Finding creative cost effective ways to save money and increase sales takes planning. Take time to plan and brainstorm with trusted mentors, consultants, advisors and friends. Try not to get so bogged down in the day to day you forget to plan for tomorrow.