This is the Million Dollar question in the minds of every businessmen and self-employed. There are few things you need to understand to get an answer to this question. I am not trying to answer you. But, I am trying to enable you to find the most appropriate answer by yourself.
What is Economic Slowdown or Recession?
If an Industry or Country or even the world face continuous growth over a period, then it tries to correct itself by slowing down the growth. But for this, there are many reasons like natural disasters, withdrawal of investments by majority of individuals as well by most corporate investors, war and any other factors can initiate slowdown.
The fear of slowdown increases the phase of slowdown. For an example, when media pumps up with information regarding recession/economic slowdown, people tend to restrict their expenditures and thus the related businesses face a reduction in business.
Nature's solution to face the Economic Slowdown or Recession:
In nature, the large trees follow a mechanism to sustain its life when they face a drought. Economical Slowdown is also like a drought, scarcity of money or profit. When they dry season hits, trees tend to shed its leaves and thus reduces the loss of water by vaporization and also it saves the water in it's stems to survive till the rain comes. But, they will not shed their branches. The trees will wait for the rain or seasonal rain and then they will start flourishing. If the trees are not shedding their leaves and continues to supply water, the trees may die. Even if it looses all its branches, keeping only the root and main stem, chances of comeback is reduced. Trees must have as much as branches and space for reproduction of leaves when good time comes back.
If we follow this strategy, we can sustain, survive and comeback once the tough time passes away.
Suggestions:
1. List down your expenditures and identify the unwanted items and remove them.
2. List down your receivables. Try hard to collect them and increase your cash balance. You can increase the cash balance by disposing off unwanted items, space you hold and deposits.
3. Identify the list of items that can be modified to reduce the expenditures from the list of expenditures. If you sincerely work on your expenditures with proper accounting, you will have greater scopes to avoid unnecessary / unwanted expenditures.
4. Look out for other source of income generation with the available resources (Men/Material/Machine).
5. Avoid purchase of new things unless you have a grave need.
Any such Recession or Slowdown is only temporary. Never loose your gut.
All the Best.
