Small Business Trends Radio

Strategies to Survive During a Recession

David Rudofsky on Strategies to Survive During a Recession

I once read a story about a gentleman whose business was hit by a recession. His contracts dried up and he began using credit cards to keep his business afloat. Ultimately, he racked up some $85,000 in debt. But then he made a gutsy move for a company in financial distress and hired an employee which freed him up to pursue more contracts. He now has 4 additional employees and has satisfied the debt accrued during that time. His recession strategy was a risk, but it was one that paid off.

David Rudofsky, Founder of Rudofsky Associates is our featured guest in this Episode of The Small Business Trends Radio. David is in his fifth year advising small businesses on financial strategy and he shares his insights on the best strategies to survive during a U.S. recession.

Here’s a sampling of topics discussed:

  • If consumers are leery to spend — it’s a good indicator of a U.S. recession. Because here in the United States, it’s the consumers that drive 70% of the economy. A much different figure than in other countries.
  • Internet sales — are likely to see a significant increase due to rising fuel costs and a desire by consumers to consolidate excess travel spending. If you want your small business to survive, an Internet presence is a must in times like these.
  • Grow your business through acquisition — because savvy business owners realize that a recession is a good time to acquire property and assets at very reasonable prices. Your investment is likely to increase and your business can benefit from the growth and expansion.

Hear all of David’s insights and strategies to survive a recession by clicking the red and yellow player below and listening to his full interview.

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4 Responses to “Strategies to Survive During a Recession”

  1. Amanda Says:

    It’s sad to hear that consumer confidence is at a 20 year low. David offered some really good strategies and tips for recession. I do believe that internet sales will only increase as more consumers stay home because of gas prices. Any internet stores offering free shipping are bound to increase online sales.

  2. Chris Says:

    Making gutsy moves is a risk that sometimes pays off. And when times are tough. . .what have you got to loose? That’s how I look at it anyway. Change is growth and growth is good. And based on David’s provided indicator of a recession – I’d have to say that the U.S. is in one right now – or headed for one. Agree? Disagree? (And I can’t help but think about last week as I write this, when I ended up at the pump shelling out $3.99/gallon – boy that hurt.)

  3. Martin Lindeskog Says:

    Chris,

    The gas prices in Sweden is at least double so much as in America. I am waiting for real electrical cars to enter the market.

  4. Ilya Bodner Says:

    Such owners may consider getting business credit. A true business credit card is a line of credit that is taken in the name of the business, under the business’ credit. Activity, whether good or bad, is reflected on your business’ credit report through D&B and other financial institutions, and the liability for any debts incurred and bills owed is with the business.However, some companies out there offer “business” credit cards which they require a person guarantee for. These institutions will often ask for a personal guarantee, and will almost always ask for a social security number from the person applying for the card. If this is the case, the credit card is not a business credit card, but is simply a personal credit card which is used for the business. The business is not liable for bills and debts – you are.When applying for a credit card for your business, watch out for areas asking for your SSN (and not your TaxID or EIN) and be wary of any credit card that asks for a personal guarantee. By ensuring that your credit card is in the name of your business, you can help to build your business’ credit, while avoiding creating problems with your own.

    Many companies offer a list of credit cards that are issued under the business name only. Those lists typically run $300-$900, depending on the quality of the information inquiring. I would suggest starting your search online via google or yahoo. Search for “strong business credit” (just like that in quotes) to find services that sell the information.

    Good luck,

    Ilya Bodner
    Small Business Owner
    Initial Underwriting Group

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