So what can you do to keep your business from going under? There are just two ways to gain profit – increase sales or cut costs. Given the awful state of businesses during the recession, most would just go by cost-cutting.
One of the biggest costs for any business is people. That’s why massive layoffs and restructuring have been one of the themes during this financial crisis. Others big businesses have looked into putting operations on hold for months just to put cash outflow on hold.
But what about the entrepreneur? It’s a fact that entrepreneurs may be looking at months or years before hitting returns on investment but entrepreneurs have expenses as well. It doesn’t seem to be a difficult choice between food and keeping a business open but those with fighting attitudes don’t give up that easily.
Some 18% of owners surveyed in April said they are working a second job, according to the latest findings from the American Express Open Small Business Monitor. Many of them have sacrificed their personal finances and have stopped taking a salary to deal with the current economic reality.
Part-time work pays for their personal expenses so that they can keep money circulating in the business. Some have even used their earnings to fund the business.
While this all boils down to excellent management skills to make it work, it does carry some risks as well. Entrepreneurs who have done so try to keep this moonlighting a secret from clients since this does affect reputations.
Source: WSJ
