PLAYING BY NEW RULES
Five lessons business owners learned from ‘ The Great Recession ’
The Great Recession of 2008 ushered in a new economic era for our country – one that many business owners are still adjusting to … years later . Recovery from the crisis has been slow , and business owners must now play by new rules to be successful .
Different industries were affected in unique ways , but the reduced economic growth that followed led to loss of income across the board . Businesses of all sizes were forced to learn how to do more with less , but this could also be considered a silver lining . The crisis forced businesses to cut costs , reevaluate systems , focus strategies and get back to the basics . It also prompted business owners to reconsider their company ’ s core values and align their endeavors accordingly .
Since The Great Recession , we ’ ve seen many clients navigate the uncharted waters of this “ new ” economy . Here ’ s a list of some of the lessons we learned alongside these clients . Not surprisingly , they are as important today as they were nine years ago .
Lesson # 1 : Employ ‘ Jacks-Of-All-Trades ’
The loss of capital during the recession meant that many employers had to reduce the size of their workforce , which caused unemployment to surge to its highest rate since the Depression . These reductions in staff meant that more responsibility would have to fall on fewer people , which forced many employees to learn new trades or find work elsewhere . Those who remained in their positions had to diversify their talents and find ways to work smarter , not harder . This trend has carried through to the present day , as employers seek employees whose skill sets meet multiple needs within the company .
Lesson # 2 : Attract Workers With Benefits
Salaries continue to be lower than they were pre-recession ; however , both employees and employers are discovering the value of a complete compensation package . Because of the
by : Tom Jeffries
CPA , Principal 212 N . Washington St . Millersburg , OH 44654 ( 330 ) 521-4533 tom . jeffries @ reacpa . com extremely high costs of health care , employees are increasingly enticed by employers who are willing to offer better than average health care coverage . Many are willing to accept a much lower salary than they may have previously in order to obtain better coverage . In addition to health care benefits , perks such as job flexibility , stock options , opportunities for work / life balance and personal development are also important these days .
Lesson # 3 : Hire Smarter And Keep Employees Happy
Hire the right people the first time around and keep them happily employed . A good employee is a hot commodity , and keeping them satisfied will go a long way to bolster your bottom line . Compensate fairly , consider what ’ s important to those you hire , provide training and opportunities for self-improvement , and let your employees know they are valued . Work hard for them and they will work hard for you . Employees are your greatest expense and your most valuable asset . Treat them well and they will provide you with the greatest return .
Lesson # 4 : Operate Your Business More Efficiently
Businesses must operate more efficiently , both from a staffing and operations standpoint , to be successful in today ’ s economy . Banks aren ’ t willing to take the risks they once were , and business lending ( especially small business lending ) has not fully recovered since the recession . Reduced access to capital in combination with the risk of “ going it alone ” has made entrepreneurship especially challenging . Whether or not small businesses will continue to rebound in the coming years is yet to be seen , but regardless of the size of the organization , strategic planning has never been more important than it is today . Efficiency is the name of the game , and it ’ s imperative that companies position themselves to work smarter in the changing economic climate .
Lesson # 5 : Get Help From Business Advisors
The importance of using business advisors to ensure your business is on the right track cannot be overstated . Surround yourself with a team of professionals , such as an attorney , banker , CPA and a financial planner , who can help you set and attain goals , and position you to take advantage of opportunities to secure and utilize capital .