In a tight economy where money is hard to come by, most business makes appropriate measure to reduced operational cost as a mean to balance their budget. Companies that have engaged in cost cutting initiatives which have led employees to be layoffs and their product quality to be reduced, have projected a sign of weakness. This weakness implies to their competitors as well as their shareholders, a sign of fatigue cause by this recession.

These companies can't any longer continue surfing the Tsunamic wave of this economy. Their purchasing power has weakened alone with the value of their shareholders. Although these companies have laid-off workers and cut on product quality to keep their stocks values in competition with their competitors, doesn't mean they have overcome their weaknesses. However, any attempt to reduce in cost to keep their market shares up is advantageous in the sense that if the reason for the cut is not noticeable by investors, then their weaknesses would have gone undetectable. If this were to happen, it would have helped avoid a sudden drop in stock prices because then investors would not have noticed that the true reason for the layoff is because of a loss in profit.

However, companies that are strong enough to surf this Tsunamic wave, should now takes the advantage of their competitor’s weakness to increase their market shares. They should then promote to their competitor’s shareholders, their strength for having battled this economic wave. They should pronounce publicly, they growth strategy, strengths & opportunities to their share holders as a mean to reduce the company's threats & weaknesses. Investors are afraid of layoffs, usually when companies laid-off workers it means that they’ve been a drop in profit. The reason for the layoff is an attempt to compensate for the loss. But very often this tactic doesn't work, especially if the loss may have been the result of miss-management or wrong strategy employed. In this case even if employees are laid-off, the miss- management continues.

In the case of the small business, employee's being layoff does not affect their stock as much as the corporation. Whereas the small business can lay off workers to accommodate their loss, the corporation must be careful if they must go that route. The only cases where corporation layoffs do not affect their stock prices is when the company lay off workers because of departmental downsize or the complete elimination of a department.

The corporation analyzed skills, duties and job titles especially during a takeover. They look for relationships in job titles as it pertains to duties and departments. This happens during the first trimester of the takeover, but can continue longer as strategist from the acquisition company learns more about useless job titles and duties. To keep it simple, the acquisition company's intent is to consolidate, because to the strategist, any employee duties that overlap each other should belong to the same department. This is why very often after a takeover has been finalized, employees change departments; others are laid off, some have their titles change.

And sometime new technology can bring about new ideas that can cause workers to gradually displace by machines because production from the machine side is incomparable to that of the employee. Most corporations would not hold the future hostage for the need of holding on to jobs that are performed by workers. If new technologies eliminate the need for employees presence for a particular job, than companies may invest on teaching employees how to fix those machines that have replaced them. However, it is without a doubt - that employees for this new job description would not have been in greater need since higher skilled workers plus work load would have been to a minimal. The small business can also benefit from these technologies; it's all depends on their business practice and the kind of technology that is necessary to have their work performed by machines.

Nevertheless, the spend manager of a solid business that is surfing this economic wave, should selectively spent their monies only on products that hold true value. Which mean to invest in necessities like real estate, agriculture & home products that are always in need? During a recession commodities that are viewed as necessities do not lose much in value. Their market price fluctuate a fraction at a time but never to the point where it cause shareholders to cash out because of fear. As a mater fact, during time of recession, necessities are in greater needs because people only buy what they need. And for that, the small business can focus on selling products that are at need at a reasonable price where profit is possible.

One of the main important points that the small business can consider is location, because if the business must have a physical presence, than location can affect the profit margin. For that, the business owner can consider relocating if rent is greater than half of the profit margin the business accrued, other than that, it's a matter of proper selections, choosing to sale products that are in need at times of recession. Then again, the business owner must know the customers like he/she knows the back of her hands. That is to say, know the income level of people in the neighborhood where the business is situated. Know their ethnicity; hire workers that can relate to them. Having knowing this would help the business buyer select which product or services is in demand for that area, and how the customer behaved toward new products.

Small businesses who cannot capitalize on an item should not consider selling it. If the profit you make on that item is too small, you must average how much of them you’re selling comparing to the profit you retained from the sell. Sometime, it may not pay to carry some items, especially if you, the business owner can gain more from selling something else. Since profit is directly proportional to items sold, than items must correspond to customer's needs.

Be aware of name brand, sometime you don’t gain as much profit selling name brand items than if you were to sale common brand that goes for lest. It is how much you retain from selling the item that makes a different. Where you may sale a pair of Level 99 for $170.00 and make $4.00 profit on every pair, is not as profitable when you sale a pair of regular jean at $60.00 and makes a $10.00 profit. In this case, the business owner should carry just a small stack of the name brand jean just to attract customers who are into name brand into the store. Having them in the store will attract more customers, and even if they don't buy the name brand, it's possible that they may found something else that is equally in their needed list.

Under an economic crisis, business owners should spend money on commodities that can yield the most return on investment. Among which are those that I have stated above. But to do that, the company should reduced spending on products that bring fewer returns. Products that are selling slowly should be narrowed down in quantity. Which mean if a business owner normally purchased 200 items, that 200 should be reduced to a level where at the end of each month the business has no left over?

At a time when money is hard to come by, business owners must be precise when during inventory. They cannot afford to have left over or damage products that yield no values. Every loss must be accounted for and every damage product should indicate a net loss from the overall net gain. As the economy worsens, as a small business owner, you do not want to contribute to this lack in sell. Your job is to minimize it by neutralizing this loss through proper budgeting and careful selections. That is to say organize your budget around product selections that are selling and minimize your spending on those that are not selling.

A better understanding, implies that the spend manager reevaluate the demand supplied curve of the business and make suitable measure to accommodate demand while slowing down on the overall supply. This strategy works because the business owner spend more of its money on the products that attracts demands as oppose to those that yield fewer return on investment.