Author: Jean Richard Franck, M.A
Right from the onset, man has been able to make good changes that have led to the progress of humanity. Historically, it is very obvious that every generation has enjoyed some form of good living standards, amenities and opportunities which were not available to their fathers. Roger C. et, Al, (2010). In modern times, technology is rapidly advancing and it seems this tradition is about to change because we are now completely dependent on the machines.
As a result of these machines in place, we are seriously failing to make important investments in environmental, physical and human resources. The global economy is becoming highly competitive daily and the recession that started since 2007 seems not to ever end. It has been the worst time, not only for America but also for many other countries in the world. Roger C. et, a, (2010)
With economic insecurities on the increase globally, we are living in fear. Recently, it has been noticed that most of the economic policies made by the government are based on short term plans and intermediate terms. It should be noted that difficult times can come in any situation. The paramount thing to these difficult times is how we are able to get out of them on time. Below are some of the effective ways business owners can recover from the times of recession.
1) Select the Best Policies
In order for the business organizations to get out of recession, it is very essential for them to select the best policy for their companies. Some of the recovery policies that should be followed are;
a) Demand Side Policy
b) Fiscal Policy
c) Monetary Policy
d) Supply Side Policy
g) Tax cuts
h) Free Trade Agreements
i) Interventionist Supply-Side Policies
It is essential for business owners to consider the state of their business organizations as it will help them discover the best policy to use. At the initial stage, it might be difficult to select the best policy. But, the company needs to understand that it is the only way to overcome recession. So, the need for the best policy is very crucial and must be focused and worked on effectively. They can start with the trial version and see which policy suits their businesses and make strategies in the best possible ways. Mario Draghi (2014)
2) Increase Productivity of Workforce
Once the policy has been selected, the next important task of the company is to enhance its productivity in all possible ramifications. A common drawback of the economic downfall is that the company does not get proper orders due to which their workforce lose the motivation to work hard.
Now is the right time for them to get back to the tight routine. It is important that they should understand the demand and supply of the company. They have to understand that the success of the company depends on its productivity. The only way to achieve the productivity is to constantly motivate the employees and make them understand clearly how their hard work will make the company achieve its goals. Once the productivity is enhanced, you will definitely notice the company taking a positive turn towards recovery. Nitin Nohria (2010)
3) Infrastructure and Innovation
The most important roles in the recovery of the company is played by the infrastructure and innovation made available. Remember that we are in the age of technology and no one can progress without the impact of high-tech devices and software.
It is very important that you give attention to your infrastructure and ensure improvements on them. Assure your employees that they are appropriate and comfortable so that they can work dedicatedly without any form of fear and not getting tired easily or feeling lowers back pain.Nitin Nohria (2010)
In the same way, organizations should train the workers to use the latest technologies as it is the only way they can compete with their rivals in the business environment. There are different types of product and information management software in place that can help businesses recover quickly. It is of a necessity that the organizations should start introducing the technologies in their business premises to boost productivity and results. Once the latest systems have been introduced, it will then become easier to manage data within the company and so workers will be able to effectively deal with their tasks.
4) Insurance and Savings
Once the company is able to go towards recovery and it is experiencing a positive change in the revenue and sales, then, it shows the right time to think about the insurance and saving of the company. It should not be forgotten that recession can set in at anytime and the economy can depreciate. It means that company owners should prepare for the situation so that the company will not suffer from such kind of downfall ever again. John Irons (2008)
In order to make it possible, the best strategy is to start with the insurance program. Assure that the company and the employees are insured and this will give your employees the surety that you will help them in case of bad times. In the same vein, the owners should start saving for the worst time. Just as it is important to utilize the profits for the progress of the company, in the same way, a decent fraction of the profit should be saved and to be used in tough times of the company.
5) Effective Government
The government plays a key role in the progress of the company. There are several policies introduced by the government which can make or mar business organizations. This is the basic reason every company should ensure that the rules and regulations of the company are followed properly in order not to lose focus and suffer in future.
Once they follow their rules properly, they will notice that even the government agencies will help them to recover efficiently in times of recession. When you have the government on your side, no one has the power to pull you down. Mario Draghi (2014)
The Bottom Line (Summary)
Many business organizations have faced recession times in the economy. However, there have been just a few that have been able to recover from the bad times. The reason is that, for you as a business owner to recover, you need dedication, focus, interest and love for your business. These are the only ways you can grab the attention of your customers once more and ensure within your capacities that your employees remain loyal to the company and contribute their best. Find inspiration in little things so you will never lose hope.
Roger C. et, al, (2010) From Recession to Recovery to Renewal:An Economic Strategy to Achieve Broadly Shared Growth
Mario Draghi (2014) A consistent Strategy for a Sustained Recovery
Nitin Nohria (2010) Roaring out of Recession. Havard Business Review
John Irons (2008) Strategy for Economic Rebound
Author: Jean Richard Franck, M.A
Published author of “A Complete Innovative Plan of Action for the Strategic Manager”