Four Strategies to Survive Recession
A global recession continues to linger in homes and offices in the UK and around the world. How are you defying the downturn?
We analyse the role of the four columns of business ΓÇô the workforce, start-ups, SMEs and big business ΓÇô to find out how they are strategizing to survive the greatest depression since the 1940s.
The Workforce: Change
New workers are graduating by their hundreds of thousands every year; since the recession officially began in 2007 there have been over 1.5 million new graduates in the UK alone. The most recent reports suggest that 83% are applying for every single vacancy in their field in a bid to find work.
(Read more about Graduates Submitting Record Job Applications.)
The strategy for this new workforce has been to stay on their toes and keep changing. For graduates who joined the world of work during the recession, the best survival method to keep up with previous generations has been to change jobs often.
For national business, this can work out equally well. Frequent change keeps the market moving, keeps fresh talent coming in with new ideas and encourages better working practices to remain competitive.
Reports on the number of start-ups in the UK are fluctuating almost as much as the economy. Are there more or less? Does the recession help or hinder opportunity? Everyone seems to have a different opinion.
But it canΓÇÖt be denied that there are businesses beginning regardless of the economic climate and finding their own ways to survive and thrive in difficult times. One of the key strategies of these has been to capitalise on the investment opportunities that exist outside of the banks.
(Find out about the ┬ú10m Fund for Budding Business Brains.)
The recession seems to be encouraging rather than discouraging wise investment while the banks are embroiled in scandal. Capitalising on this fact, start-ups seem to be making use of personal shareholder and government investment and getting ahead despite the fear of bank lending.
Small business continues to play the role it always has in expanding, diversifying and keeping the market ticking over at all times. Happily, in 2012, over 80% of small business owners in the UK assert that they expect their businesses to grow this year regardless of the climate.
In order to do this, many are making the most of unique recession-time opportunities. Recession almost always equals a change in consumer behaviour ΓÇô such as an increase in online shopping or a boost to discount sales, etc.
Many growing SMEs in the UK are using these changes to tailor their offering, meeting the needs of their customers as and when they change and finding success in the strangest of places.
(Discover a prime example of this with Cultural and Commercial Office Space at Welbeck Abbey.)
Big Business: Stability
What we all want as part of a global economy is to maintain confidence in the people holding the purse strings ΓÇô so the onus is on big business to remain safe, steady and supportive of a fluctuating economy.
The strategy for this seems to be keeping costs down. While smaller outfits diversify all the time, approaching new and different ways to maintain or increase revenue, for big business itΓÇÖs more about hibernating until the scare is over and everything returns to normal.
For this, successful businesses are being recommended to resist the urge to massively innovate or overspend on unnecessary advertising or recruitment. In a fast-changing world, trust is being placed in big, strong businesses that show no signs of panic.
Do you agree or disagree? What are your top tips for business survival? Share your thoughts in the comments below.