When the great recession emerged in late 2007, many companies had fallen into a financial demise. According to a U.S. Census Bureau study taken in 2011, over 200,000 small businesses closed during the 2008-2010 period. In addition, over 3 million jobs were gone (Shapiro). The highest recorded rate of unemployment was 9.7 percent nationwide. There are currently over 11.7 million unemployed people in the U.S.
There were several industries that were seriously affected by the recession. The housing market was one of the worst to be stricken. The value on homes went down as far as 25 percent. According to a CBS News Money-watch report published this year, the purchases of new homes have gone down 80 percent (Glink). Due to the value of the dollar going down, foreclosures have become a reoccurring problem in many places.
Some companies have lost hope in keeping their businesses going. According to statistics from the Small Business Administration, about 51 percent of small businesses only survive at least five years (Shaefer). The key factors for businesses going bankrupt are due to lack of money, low sales, lack of experience, and more.
However, other businesses tend to use a six step strategic system to remain successful and survive the recession. These outstanding companies would trim business expenses, right size the business, downsize the work roster, expand on marketing, plan the future of the business, and stay aware of all their important resources.
The motive to trimming company expenses
First, a company would take a look at their annual budget and then seek out ways to trim down the expenses. According to a 2013 blog by Mike Michalowicz, author and financial advisor Suze Orman once said “If you want to get out of debt, become more excited about saving money than spending it (Michalowicz).” When the proper action is enforced, then it turns out to be a positive reaction for the business. Many people have said that they would...