Podcast: Play in new window | Download | Embed

Subscribe: Apple Podcasts | RSS

The growth of any business is directly related to the amount of effort one puts in his business to make it big. However, it is also co-related to the economy of the country. If the economy is sluggish, you can’t really expect much from the business, no matter how hard you work to develop it. You have to wait for the economy to gather some speed so that things work for you and you start doing well. It has also been witnessed that the economy is doing great. However, it is just few specific industries that are not performing due to certain policies of the governing body. This also plays a vital role when it comes to the development of the business. If you are also a part of the industry that is affected by the policies of the governing body then it may cause harm to your business as well. You may suffer hardships till the time the policies are not amended for the betterment of the industry.

Things are quite similar when it comes down to the construction industry. This industry does really well and favors everybody who is associated with it when the policies are favoring it or when the economy in a whole is doing well. But when we check the flip side of the coin where the policies are against the construction industry or the economy is in a pathetic state, the same industry that was booming and was favoring a whole lot of people can turn upside down for everybody. This however does not imply that one should shut shops when the industry is not doing well. It is also not practically possible to close the construction business at the time when things are not going your way and to pick it up from where you left when things are back in shape.

The recommended option would be to go slow when the tide is against and ask the investors to hold on with their investments for some years (if you are associated with constructing condos). You can also take up small works/projects that come your way. When things are not working out for you, it is better that you stick to projects that do not have a good profit margin. That will at least help you to keep the company floating and you may not have to look for any cost cutting measures.

Just in case, you fall in the category where you are unable to get any business neither big nor small, it is prudent that you cut short on your costs by either renting your heavy equipment or if you feel necessary then selling the one off that you feel you may not need them any longer. If things does not become any better after taking these measures, then the last resort to keep your company floating would be to sack employees who are not so experienced but still have a good package. That will help a bit to cut down the cost and you can expect things to move on for few more months.