Question

Question:

What is a recession? What are some ways companies can prepare for a recession and be better prepared for growth after the end of a recession?

Your answers will be short essays and should be three full paragraphs or longer.

Answer 1

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MEANING:

Businesses have to launch, handle and sustain tremendous challenges for a long time to come. In an economic downturn, these problems will increase. The economic decline of the gross domestic product for 2 or more quarters, as described by Investor Words.com. A quarter of the same year has a negative impact on businesses for at least six months.

SOME WAYS:

Look for steps to cut costs. As companies expand, stocks and slow sales accumulate. More dollars are related to stagnant products. Check the tablets of your inventory to see what are sluggish and non-selling items. Reduce it until it is sold. Does not buy dollars for other valuable inventories according to need to get a promotional seller offer.

Concentrate on customer care. Reducing the workforce may seem to be a fair, but counterproductive way of reducing costs. The explanation for this is twofold: You don't trust workers, so if economic conditions change, you have to start out at first by screening so educating new staff. Your company stays at home with customer service and making an attempt to save you in an economic downturn. Recall, according to CNN Money.com, 70% of the US economy is focused on consumer spending. Give your clients a reason to spend their money on your business

Test frequently the cash flow and profit and loss statements. In terms of management of the assets and liabilities, Lori Reiner is a Qualified Public Manager and tells businesses that monitor their cash flow regularly. Look to simplify items, such as office supplies and travel costs, where possible. Close credit lines and pay cash if necessary.

Enhance productivity of employees. Encouraging profitability, such as discounts or revenue rates, by providing employee benefits is an creative way of rejuvenation. Limited benefits coupled with truthful communication, appreciation and productivity increase. Be mindful that your employees are the greatest asset of your business.

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