Benefits of a recession for a business!

M

mattdo

Registered User
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31
Hi,

I am currently in business for myself and I am finding that all of this talk about the current recession is affecting me and the my business. In choosing to have an optimistic and positive frame of mind, I wish to explore the possible benefits of this economic climate has on a business....I will start with a few....

1. Lower prices for commercial space to rent and to buy

2. Opportunity to become more creative in doing business

3. Forces people to change ie. become more customer focused

4. Lower mortgage rates

5. Lower priced vehicles

6. Opportunity to upskill and retrain

these are just a few I thought of...I would love to hear some more...

Thanks
 
Ya I like to see people being positive.Negativity gets you nowhere,but a little realism is no harm either.
 
mattdo said:
5. Lower priced vehicles
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Vehicle prices certainly have come down, but at the same time, access to credit may not be as easy.

And, in the case of leasing, while rates have come down, credit is not as easily obtained, and resiudals have plummeted, this leaving monthly costs unchanged/higher.

Of course, if you are a cash buyer, then, yes, it certainly is a positive (for the buyer!)
 
mattdo said:
1. Lower prices for commercial space to rent and to buy

2. Opportunity to become more creative in doing business

3. Forces people to change ie. become more customer focused

4. Lower mortgage rates

5. Lower priced vehicles

6. Opportunity to upskill and retrain
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- Lower advertising costs
 
One for sure is people are willing to work harder now than before. Another is rates of pay. Rates and charges in the construction sector were too high and the recession has helped to lower the cost of hiring a new employee/subcontracting work. Union's in the construction sector i.e siptu have pushed for a 3% increase but the reality is that €14.88 a hour for a general operative (unskilled) was not sustainable for a business. A 10% reduction has been muted by the CIF.

Back to your point, I would say its adds focus to your business and adjusts your business expenditure.

lastly credit control. Now businesses can ask for personal guarantees, deposits, credit card details before services/good are supplied. These were some things you may not have asked potential customers during the boom.
 
Complainer said:
Nice theory, but there is little evidence that this is happening in practice.
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This is true. I cant understand the high prices for coffe & sandwiches in some places and they're almost empty.Also empty furniture and hard ware stores with pig ignorant staff.

I do think theres opportunity for small indepandant business in a recession. You see the large chains pullin out because the market is no longer big enough. But they might have to sell 500 of X when a small place may only need to sell 50.
 
I also hope that the customer service will improve in shops in my area- I own a small Shop since last November and even though it's hard financially I am trying to stay positive and try to deliver excellent customer service :)

What people don't realize - it's so much more fun doing your job when you are friendly as it's reflected on your customers too...
 
What I've found since the start of the recession is that people are shopping around more. I work in the insurance industry and with more enquiries coming through the door, those of us who bother to do the work and provide a decent service, we've seen more new business, more than compensating for clients who have ceased trading.

I also think there is a leason in this for us all, how many of us were guilty of just buying without doing the sensible thing and price checking? I can hold my hands up and say guilty as charged. In the last number of months we have changed from ESB to Energia, from Eircom to Imagine and also our stationery supplier among other things.
 
Thanks for the question askalot! I wouldn't say I am a "pollyana" however I feel a positive and optimistic way of thinking is much more empowering in creating a business that is profitable in these economic times. I feel that by focusing on the positives rather than the negatives, it is more likely to create solutions in relation building successful businesses that serve the needs of its customers and creates worthwhile employment opportunities. Interestingly enough I heard recently that more millionaires were made during The Great Depression than any other era in U.S. history. ......interesting?
 
Here, Here, Mattdo! We are a struggling business, but have just obtained funding from BOI and also a grant from our local enterprise board. Spent hours on new business plan, did market research on Grafton Street and obtained statistics relevant to our industry. What I find is our suppliers prices still remain the same. Advertising costs still the same, its very very tough. Customers expect good value for money or they will go elsewhere.So you have to remain positive, Im sick of all the negativity out there. Good ole BOI gave us a loan, who says they're not lending?
 
Elphaba said:
Here, Here, Mattdo! We are a struggling business, but have just obtained funding from BOI and also a grant from our local enterprise board. Spent hours on new business plan, did market research on Grafton Street and obtained statistics relevant to our industry. What I find is our suppliers prices still remain the same. Advertising costs still the same, its very very tough. Customers expect good value for money or they will go elsewhere.So you have to remain positive, Im sick of all the negativity out there. Good ole BOI gave us a loan, who says they're not lending?
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Great good news story - we need more like it. Best of luck with your venture.
 
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