How to Grow Your Company as the Economy Recovers from the Recession

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The greatest change that seems to take place in the recovering U.S. economy is an aging population with low level of spending due combined with a high level of unemployment, low growth in consumer incomes, and difficulty to obtain credit and the high interest cost credit.

On the other hand there is an increasing demand for products and services that have not been a priority during the recession. It is expected that this demand will increase as unemployment from the current high levels improves over the  the next sixteen months. However, consumer growth in spending will very likely stay below 4% the historical levels.

In a low level demand and more difficult credit environment, small businesses can move on successfully by being aware of the following and acting accordingly:

  1. Tighter and expensive credit will require businesses to pay more attention to managing cash flow.
  2. Increased emphasis to asset turnover to reduce working capital.
  3. Companies must employ tight cost control and planning to keep profits at desirable levels.
  4. Businesses must revamp their management and distribution systems and strategic plans.
  5. Businesses must continue to outsource and use technology to reduce labor and distribution costs.
  6. Companies should make a priority online marketing to increase sales efficiency.
  7. Businesses should get into partnerships with other firms to share costs, improve product and services.
  8. Companies must be able to be more integrated solutions providers and offer real value to customers.
  9. Management structures must reduce management expenses and improve their lines of communications and clarify responsibilities.
  10. Must address worker training needs. Companies must increase employee productivity. Employees must be able to do more than the past restrictive job description allowed.
  11. Successful businesses will have employees that are more thoroughly informed.
  12. Top rate customer service will be the hallmark of successful businesses.

2 thoughts on “How to Grow Your Company as the Economy Recovers from the Recession”

  1. In addition to the above article I’d like to say that to survive, grow, remain profitable and maintain positive cash flow, your company must develop and implement Effective Strategies and Action Plans at specific points in time, regardless of your company’s stage of development (infancy or maturity) or its market niche in today’s economy.
    Companies today understand that they need to “get it right” both now and tomorrow. There is no time to fall back and plan, and often no second chance; events move too fast for that. Whether you have successfully penetrated your market, are in the process of entering one, or are undertaking a global expansion, you achieve competitive edge by doing two things:
    • The first competitive edge is to know 1) the critical factors to success in your industry; 2) your customer needs; 3) your competitor’s strengths, weaknesses and strategies; and 4) the business opportunities available to your firm.
    • Once you know these key elements, the second competitive edge is developing and executing an action plan which is essential to the company’s sustained positive financial performance.

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