As recession has enveloped every industry, it lead to cost cutting as the companies faced the crunch. There are times when one has to be diligent while handling finances. Even if the business is flourishing it is advisable to keep track of ones budget and to never cross the red line.

Designing a budget not only means cutting down on cost, it also means enhancing the current productivity, investing on the right plan and re-structuring the policies so as to yield maximum.

Some businessmen prefer taking risk in situation of uncertainty while others play safe. Not always can a risk taken be fruitful hence one should find out the risk involved and invest small amounts so that the failure does not make you bankrupt.

Amongst the options available the most cost effective alternative can be chosen instead of spending lavishly. The best service is available at exorbitant price hence if the service is within the budget it can be accommodated contrarily it is better to opt for feasible investment.

Lay-off the most widely used method to cut costs and is the last alternative that the company banks upon. Before taking this decision one try cutting down the budget on social needs. In difficult times the appraisals can be abolished but ceasing ones daily bread can have crucial effects.

Another method that can be implemented for cutting cost is investing on high interest bearing items where you get returns for the money spent.

Problematic times can be avoided if one takes due care of their funds. It helps you from falling out of the game and standing tall during recessionary times.

-Arti Bakshi

“Human Resource”

www.humanresource.net.in