Steps to managing the global financial crisis

Written By Steps To Faculty Published July 6th, 2010

The 2007-2009 global financial crisis has hit home for millions of people across the globe. Many small businesses have closed due to lack of cash flow and an insufficient demand for their products. Even larger companies are facing financial problems. Take Dave & Buster, Home Depot, and even iTunes has reported sluggish below average sales of music downloads (roughly 40% down since the first quarter). But more than a fiscal crisis, the global financial crisis, which was caused by unregulated spending and borrowing, has also changed the way your customers think about money and in the ways in which they spend. This will affect your business now and in the future. Let’s take a look.

Step 1 Expect less

As mentioned before, consumers are beginning to spend less on consumer goods in all areas of life. This probably includes your business as well. What do you do? Advertising may not always help. Instead, plan to do with less as your profits will decrease. Even if right now your profit levels remain unchanged, these figures can fluctuate as the shaky economy recovers.

Step 2 Plan ahead

Money is tight and every last cent can mean the difference between being in business or going for broke. Just like you would with your family, think about your business six months from now using the worst case scenario. What will happen if no customers buy your products? What happens if you have to declare Chapter 11 bankruptcy? Keep these thoughts in your head as you plan from now as to how to proceed.

Step 3 Save

Save in whatever manner you can so that you can cover expenses later down. You never know what will be so save every penny.

Step 4 Raise your own capital

You may already know that banks are not lending money to businesses of any kind right now as the government regulates them heavily. In addition, their own cash flow is stagnant. As a result, you are going to have to raise your own capital if you need to keep your operations going. Visit creditunion.org to find credit unions that can help you by establishing special loans for you. You should also consider private loans at prosperity.com.

Step 5 Get back to basics

Instead of stocking shelves or offering products that are complicated or not something that your customers will need on a daily basis, provide the essentials. Stock food items and health and beauty products if you can. Or offer a credit bank or barter bank when customer cannot pay. By doing so, you will over time maintain your business without incurring debt.

Remember, despite signs of recovery, the effects of the global financial crisis are still around. Please visit stepsto.com for more great business advice.


Roger Due

Investing in Your Destiny® & Coaching Program - Wealth Building Summit Dallas, Texas

My name is Roger Due and I am from Albuquerque, New Mexico and I am the owner of the Monsano software company. This has been an absolutely fantastic conference. This is the best I have ever been to.