survivalrecession

How to Survive the Recession !!!!

S.T.Kim Company, LLC
Certified Public Accountants

Our Mission

To maximize benefits for
our clients by going above
and beyond all others.

Currently, we are facing a severe recession because of 3 reasons:

1.        The internet and computer engineering has changed the structure of
almost all industries. The internet has basically changed the way we do
business and changed almost all business models. Author Randall Stross
– Planet Google says that Google dominates all information along with
several other areas. See attached summary. Because of Google, many
traditional mass media companies such as ABC, NBC, CNN and other
many traditional media companies are slowly being made redundant.   Many
internet companies are supplying media content that are superior to those
provided by traditional media companies. These changes do not only affect
media businesses but also retail and services. For example, Amazon.Com
has pretty much changed the traditional retailers business model. Also,
Dominoe Pizza has taken strong advantage of the internet to further its
business. Due to the internet, traditional small businesses are getting less
and less of the market share.

2.        The financial meltdown and stimulus policy failure is also responsible
for the current recession. Beginning 10/08 thru 4/09, America faced financial
market meltdown due to the failures of Lehman Brothers, AIG, Merrill Lynch.
The government stimulus package did not stop the recession for
happening. President Bush spent ½ of the 700 billion package and
President Obama spent the other ½ to avoid financial meltdown. They did
stop the depression, most of this money only went to help the big banks on
Wall Street; this money did not trickle down to the small businesses. The
reason for the recent increase in the Dow Jones Industrial Average is due in
part to the assistance of the stimulus package.

3.        The third reason for the recession is the financial bank regulation and
loan supply. Banks are basically not lending any money. Loan regulations
are being tightened and it is basically impossible for a small business to
get a loan.

So, how is a small business to overcome and survive the current
recession? There are three things the small business has to do.

1.        Expand internet and website marketing. The small business has to
use proper internet marketing so as to expose themselves to the mass
consumers. Small business can use the same methods that Amazon and
Dominoes Pizza use to market their products to their consumers.

2.        Automate your internal business structure and obtain the best
vendors to supply you. Buy the best software to automate your business
practices and also to be more efficient. This will increase your productivity
and save on your costs. Also setup contracts with the vendors who will
supply you at the best quality and best prices.

3.        Leadership. Like a football team, the coach is responsible for hiring
the best players and leading the team. You must develop the following 5
leadership qualities:
1.        Teamwork
2.        Motivation
3.        Plan & Goals
4.        Communication
5.        Leader maintaining a cool head even in crisis

These are 3 factors that you have to implement in order to overcome the
current recession.

How the Small Businessman can overcome the Current Severe Recession.
By Henry S Kim, CPA