In these trying times, businesses have to work smarter to increase their profits and stave off failure in this failing economy.
There are many ways to do this including cutting payroll, focusing on core business, and partnering up with other businesses to improve your product's visibility.
Working harder just won't do it these days, and you want to make sure you are in a good position when the recession is over.
You need to hold onto your valuable employees as long as you can while at the same time finding ways to save money.
Have you thought about renegotiating contracts with your business partners and clients? It is not completely out of the question these days, and could save you tons of money.
The fact is that the market isn't just "bouncing", it is simply adjusting. There likely will not be a return to the success levels of the past. Instead, the market will settle at a low spot and then begin its steady climb over a period of years. This is where keeping current contracts valid will hurt you!
Perhaps there are some parts of the agreement that no longer make sense. Current interest rates on borrowing, credit from suppliers and vendors, and current lease space pricing from landlords simply doesn't make sense now.
It is time you approached all of the folks you have contracts with and go for those lower lease prices and better interest rates and credit conditions. While it may seem intimidating to approach your business partners with new contracts, you may find them amicable to the idea.
After all, you want to succeed, and you want your business partners to succeed as well. The same goes for them.
If they are inflexible when it comes to renegotiation, and your company fails, then they'll have no business at all! Likewise, their success likely means success for your own company. That is why it is important to renegotiate under criteria that will suit both companies the best.
This economic downturn gives you the perfect opportunity to save money before you have to go cutting employees or making "suicidal" cuts to your core business.
Small businesses are already engaging in renegotiations with long-term fixed-cost supply contracts, and so should you.
Of course, renegotiating your small business contracts is better if you have a history of good credit in paying your bills.
Another option many small businesses don't consider is the alternative to getting loans. While the standard process of getting small business loans is through a bank, you can actually get an advance for your company through Merchant Money where the conditions for your loan are much less strenuous than with a bank.
It is important to drive sales through credit card processing so that you have show a solid income. Merchant Money bases their advance amount based on your credit card sales. In this way you can avoid bank contracts and loans that are hard to renegotiate.
Through negotiations you can get better rates, lower monthly payments on contractual obligations and more flexibility built into your contracts.
There are even cases where employee jobs were saved by negotiating them to a partner business while making that partner business the sole supplier of goods for the region.
In cases like this, everyone wins! It saved the first company some payroll expenses and gave the other company millions in business.
You can't be afraid of renegotiating contracts. While this was a "no-no" in the past, many suppliers and vendors are opening up to the idea.
You may find them even more than willing to help you our while possibly getting something for themselves in return. C
hanging times call for changing tactics and if you continue to try and operate under existing conditions then you are likely looking for trouble. If you can find synergy between cost savings and business growth, then more power to you!
It is easy to see how renegotiating contracts can be good for all parties involved. You want to help your partner businesses succeed so that you, in turn, can succeed.
By renegotiating contracts, not only can you adjust to today's abysmal economy, but you can set yourself up for success later when they economy picks up.
Imagine your position as the economy starts to grow! You'll be in a perfect position with plenty of leverage over your competitors, and your relationship with your business partners will be even stronger!
By : Jeffrey_Scott_Jackson
There are many ways to do this including cutting payroll, focusing on core business, and partnering up with other businesses to improve your product's visibility.
Working harder just won't do it these days, and you want to make sure you are in a good position when the recession is over.
You need to hold onto your valuable employees as long as you can while at the same time finding ways to save money.
Have you thought about renegotiating contracts with your business partners and clients? It is not completely out of the question these days, and could save you tons of money.
The fact is that the market isn't just "bouncing", it is simply adjusting. There likely will not be a return to the success levels of the past. Instead, the market will settle at a low spot and then begin its steady climb over a period of years. This is where keeping current contracts valid will hurt you!
Perhaps there are some parts of the agreement that no longer make sense. Current interest rates on borrowing, credit from suppliers and vendors, and current lease space pricing from landlords simply doesn't make sense now.
It is time you approached all of the folks you have contracts with and go for those lower lease prices and better interest rates and credit conditions. While it may seem intimidating to approach your business partners with new contracts, you may find them amicable to the idea.
After all, you want to succeed, and you want your business partners to succeed as well. The same goes for them.
If they are inflexible when it comes to renegotiation, and your company fails, then they'll have no business at all! Likewise, their success likely means success for your own company. That is why it is important to renegotiate under criteria that will suit both companies the best.
This economic downturn gives you the perfect opportunity to save money before you have to go cutting employees or making "suicidal" cuts to your core business.
Small businesses are already engaging in renegotiations with long-term fixed-cost supply contracts, and so should you.
Of course, renegotiating your small business contracts is better if you have a history of good credit in paying your bills.
Another option many small businesses don't consider is the alternative to getting loans. While the standard process of getting small business loans is through a bank, you can actually get an advance for your company through Merchant Money where the conditions for your loan are much less strenuous than with a bank.
It is important to drive sales through credit card processing so that you have show a solid income. Merchant Money bases their advance amount based on your credit card sales. In this way you can avoid bank contracts and loans that are hard to renegotiate.
Through negotiations you can get better rates, lower monthly payments on contractual obligations and more flexibility built into your contracts.
There are even cases where employee jobs were saved by negotiating them to a partner business while making that partner business the sole supplier of goods for the region.
In cases like this, everyone wins! It saved the first company some payroll expenses and gave the other company millions in business.
You can't be afraid of renegotiating contracts. While this was a "no-no" in the past, many suppliers and vendors are opening up to the idea.
You may find them even more than willing to help you our while possibly getting something for themselves in return. C
hanging times call for changing tactics and if you continue to try and operate under existing conditions then you are likely looking for trouble. If you can find synergy between cost savings and business growth, then more power to you!
It is easy to see how renegotiating contracts can be good for all parties involved. You want to help your partner businesses succeed so that you, in turn, can succeed.
By renegotiating contracts, not only can you adjust to today's abysmal economy, but you can set yourself up for success later when they economy picks up.
Imagine your position as the economy starts to grow! You'll be in a perfect position with plenty of leverage over your competitors, and your relationship with your business partners will be even stronger!
By : Jeffrey_Scott_Jackson
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