Common Sense...does it still prevail

[Power Lunch Club]

This article is in the Scotsman today....

We are all affected by the credit crunch somehow....

Our business (may) have watched as customers don't take our services as they think it's a cost saving exercise....but of course it's almost a self fulfilling prophecy and companies watch their revenues drop.

This article warns companies not to lay staff off...it's been a well know economic fact, that the best way out of a recession is to spend, spend, spend.

Companies warned against cutting staff during downturn - Scotsman.com Business

How have the other businesses on here got on...and what measures have some you taken in the light of the current situation.

Kind regards

Gordon
PLC

 

[Scottish Business Owner]

This article confuses me somewhat. Isn't it natural that when a businesses profits go down they look at ways to trim costs? Now one of the biggest costs in most businesses will be the staff. I'm not advocating it should be the first thing to look at but I can bet in most businesses it will. I'm not saying just sack staff to save money but if you identify a role you can remove without causing too much of an issue then most will do it given the correct environment.

I have a business that provides domestic services to both Individuals and businesses and i'm certainly seeing some loss of business which I attribute to people seeing the services we provide as a luxury and something they could sacrifice in the current climate. It's well documented how many people are now shopping at discount foodstores and opposed to M&S etc.

Other businesses I work with have also seen challenging times but at the same time i'm not disheartened, I think the main thing i've been telling people is like the article it's a time to consolidate and take a look at all aspects of your business, it's also a time to keep the cash in the bank because not everyone will come out of this and their will be opportunities.