Chosen Thought

Posts Tagged ‘economy’

It’s surely not rocket science to realize that this is something everyone should do despite how much you are making. This concept is as old as money itself but an extremely tough one to master considering all the debt that people have succumbed to. Saving that extra dollar, especially when the economy takes a downturn is highly critical but also the most challenging one. What happens if your company decides to downsize and you are laid off or your hours are decreased? These are the times that savings help you get through the worst of financial times and you will thank yourself for doing so. Here are the top 4 reasons why you should be saving money:

1. Plan B- “Saving for a rainy day” is what some call it and if you find yourself on financial life support or have very little funds left in your bank account, then a safety net is vita. Having extra money for those unexpected times like a lay-off at work proves to come in handy when you most require it. Saving money can in many ways, ease the tension and stress that many people have concerning job security so be sure to save whenever you get the chance to.

Luxury- Many people who are saving money are doing it so that they can do the things they wanted to without worrying about whether or not they can make rent or if the cable bill will be paid for at the end of the month. All worries aside, those who save can live a more luxurious lifestyle so if you wanted to take some time off and go traveling, that would be a very realistic option. You could buy yourself a new car or be able to afford that gazebo you have always dreamed about as a kid but could never save enough to buy previously. The list of things you could do or buy for yourself is endless really but the main point remains the same in the end and that is to save money whenever you can, wherever you can.

If you are like most companies, you have spent the better part of the last one to two years cutting as much expense out of your P&L as you can. In past years, this was trimming the fat, but this time around you had to cut deeper. You now have a much leaner organization, but now you need sales growth.

SO, WHAT DO YOU DO?

The most common responses that we have heard CEOs answer to this question are:

• “We just need to wait for the economy to pick up and then we are well positioned for growth.”

• “We need to upgrade our talent and get better sales people and/or sales managers.”

• “We need to penetrate new markets.”

• “We need to discount now to capture or retain market share.”

We have seen several companies put these strategies into action, but few have seen a significant difference on their bottom lines. Let’s take a closer look at each:

• Waiting for the economy…

If the economy does pick up, that’s great news for everybody (including your competition). But depending on who you listen to, that could be two quarters or two years away. Even when the recession is over, recovery takes a long time, possibly years. Waiting for an economic change is an uncertain strategy which depends on too many things outside of your control.

• Upgrading your talent…