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Tips for Small and Medium businesses to surviveBY: David Prakash Kumar | Category: Business and Finance | Post Date: 2009-07-18
Small and medium businesses are the mainstay of developing countries. In large developed countries, there are large businesses that are the most important ones. They take over the smaller businesses or the smaller ones work as part of the larger unit. In developing countries, the Small and Medium businesses are the ones that exist individually and help the economy to improve. At a time of recession where there are a lot of companies closing down due to non viability and due to mounting losses, there are a few tips that will help these companies to reduce costs and ensure profitability to survive this recession. The economic recession is far from over. There will be a prolonged reduction in the growth of economies before a revival is seen. This article talks of the methods of survival for small and medium enterprises. 1. Staff costs: The companies have to remember that the staffs in the companies are the ones that are making the company to function. So cutting down on cost benefits will result in decreased motivation to work. This has to be kept in mind. So unless a worker or employee is very poor worker, the employer has to make sure that the staffs are not antagonized. 2. Efficiency and competitiveness: These are the important things that have to be kept in mind for the survival of a company during times of recession. The workers should work to their optimal capacity. The competitiveness should be ensured by appropriate pricing of the products. This will make sure of increased sales of the products. 3. Profits after tax: If the company has to pay tax, then the profit after the tax paid is the actual profit of the company. This should be adequately maintained even in times of recession. The tax benefits given to small companies should be used to the maximum. 4. Saving: In times of recession, the companies should try to save as much as possible to ensure that the company survives in a sudden downturn that may slide the company deep into recession. 5. Expansion and takeover: In times of recession the company should concentrate more on consolidation rather than expansion. The expansion plans including takeover should be done only when the economy is on the run. This will prevent the company from ‘biting too much than it can chew'. These are the important aspects to be remembered while tacking a downturn in the economy. Following these ideas and tips will ensure that the small and medium businesses will survive the economic downturn. Article Source: http://www.saching.com About Author / Additional Info: I am a physiotherapist by profession. A writer by interest. I take up freelance assignments for various websites and blogs. Comments are welcome at prakashdavid@rediffmail.com Additional Articles: * How to control joint pain? Reasons of pain and Natural ways to cure * Forgiveness - The Way To Happiness * How to get friendly with a shy girl * Refinancing home loans and what every home owner needs to know * Manipulation in Love Does this article violate or infringe on your copyright ? It is a violation of our terms for authors to submit content which they did not write and claim it as their own. If this article infringes on your copyrights, then use our Contact us form with the detailed proof of infringement along with the offending article's title, URL and writer name. If you do not hear back from us then contact us again in another 10 days. Thank you. Comments on this article: (0 comments so far) * Additional comments are now closed for this article *
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