Business Blogging

The stimulus package has been passed!  How long before your business receives government assistance?  Possibly never, but that topic is for another story on a different blog site.  For the time being, it is safe to say, you are on your own!

Times are tough and so you must cut costs.  Remember, during a recession, Cash is King!

Gary Blackwell recently wrote in his article titled “How to Cut IT Costs“  “While computers and phone systems might look like easy targets, cutting too deeply or in the wrong places could seriously hobble your business. There are ways to cut IT costs – or avoid new costs – but you have to choose carefully.”

A natural tendency is to cut outside contractors who support your website.  If your business depends on the internet, cutting the pros may hurt your business.

During recessions, customers trade loyalty for price.  This introduces a quandary.  In order to lower your prices, you must decrease your costs.  If cutting your web site expense decreases your efficiency, then your cost per new customer will actually increase!

Gary suggests “Playing Hardball” with your vendors and negotiate new service agreements.  If your business is hurting because sales are down, then so too may your vendors be hurting.  Ask for a better price, the worse they can say is no.

Another approach would be to seek a new startup to help with your web and computer needs.  Many very smart people are being laid off because other companies are suffering just like your business is suffering.  With millions of job seekers in the market for a new job, many enterprising people will decide to go into business for themselves!

Home based service businesses are most cost effective AND price competitive than brick and motor business.

Read Gary Blackwells full article by clicking here.

Ed Bejarana
BusinessBlogging.net
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