Will forthcoming Recession, give more Business?
As per Garner’s report of 2018 Earnings Transcript, the US economy is expected to slow toward the end of 2019, resulting in an average of 2.5% growth for the whole year. The Chinese Economic fall is another evident factor for the forthcoming recession, next to China, Australia and Germany also in their list
A recent survey by Duke University concluded that a recession, 2019 was looking “likely.” Nearly 82% of executives expect that a recession will happen by the end of 2020.
Are we ready?
Fortune 1000 companies started asking their executives about how well they are preparing for the forthcoming recession or global economic crisis. What should we do now?
- Are we going to experience the nostalgia of the 2008-09 recession?
- Should we have to criticize about the reasons for the cause?
- Should we have to restructure the Organisation?
- Should the investors hold their stocks?
- Should we have to withdraw the shares from the country having an economic slow-down?
“When there is a fall there is always a rise. That’s the nature of the economy.”
We have to accept the hard truth. Instead of focusing on the complications that recession-2019 may bring, it is better to look at the opportunities it can give.
Opportunities from Recession
According to many Strategists and Economists, the Federal Reserve will lower the interest rates and even chances for negative interests in the United States. This may increase the businesses using debts thus more business.
The word recession conveys different meanings to different communities. When it means loss of job for executives it is cost-cutting for the management. If we focus on Management’s view, they will seek for all possible ways that could guard themselves from this nightmare. It may be cost-cutting, restructuring, downsizing or even terminating the most trusted employees.
We should now concentrate on the cost-cutting methods that could save the business from the catastrophe.
Outsource A Lot Of Work…
It is yet another way to reduce the cost. Studies say that by 2020, 20% of US Businesses will use freelancers or contract workforces for time and quality consuming works. The enterprises can be free from many risks like human resource management, insurance handling, etc.
They have the option to terminate the contract employees if they found unskilled in their evaluation period usually around two to three weeks. The contractor has to either train the resource or replace the resource with the skills they have promised. If the resource absconds again the Contractor has to replace the resource within the agreed notice period.This is another cost cutting method followed and is a growing employment trend across the world.
Offer A New Service..
Create a new line of business. Preferably something that is not capital intensive. Think outside the box when trying to arrive at a new business idea.
For instance, if the service you previously offered was a premium one, introduce a regular service for people who have already cut their expenses and are not willing to spend extravagantly till the economic situation bounces back to normal.
Go with SMEs.
The leading Tech Giants being from any industry like Healthcare, Fin-tech, Manufacturing or any will now look for an employee or a team who could finish their projects at reduced cost without compromising the efficiency. This is applicable to not just the employees but also with the service providers.
“Here comes the Small and Medium-sized Enterprises with wide-open doors having abundant talent waiting just for the opportunities.”
There are many advantages for the large Enterprises to shake hands with the SMEs right from being Agility, team spirit, simpler organization structure, better connectivity to faster decision making.
One of the major problems with the larger organization is the organization structure. Every employee will have a well-defined set of duties and is segregated between the team members. SMEs have this advantage of closer connectivity, reducing a lot of resources in the middle thus saving cost.
There is a lot more to discuss and if the discussion is about opportunities it can bring confidence to the required.
“Hiding yourself from the crisis is not always the right decision, face it to unleash your strength”
So SMEs, let us be ready for opportunities to knock on our doors in the name of RECESSION 2019-20 and show what we are capable of.