How to View an Economic Recession Realistically - and Cut Costs

The media would certainly have you believe this. Just pick up any paper or listen to the 6 'o' clock news - you're guaranteed to be bombarded with terms like "Countries in recession" and "a global financial crisis." But are such strong words really relevant to the current Australian economy?

Without a doubt, the property and finance sectors are hurting. But the majority of this pain is created by the media - showering Australians with pictures of doom and gloom. So what is the result of this? Of course it undermines consumer confidence and everyone stops spending. And when nobody buys, business stops! It's that simple. No wonder we're all feeling the impact of an economic downturn.

Consumer technology is one sector which certainly takes a blow when the economy puts on its brakes. Spending slows completely. And it is mostly business owners who cut expenditure on technology.

But they shouldn't - because technology is an amazing enabler. When used properly, it allows businesses to work more productively at much lower costs. And isn't this exactly what we are looking for right now?

How technology can cut your costs in a recession

Let's take a look at how this emerging technological way of thinking can save you thousands -

Where it was once okay to spend a few hundred dollars on an interstate flight and take one or two days away for a conference, it is now considered prudent to substitute this with a free Skype conference online.

Similarly why spend more on phone calls when it's so simple to switch to VoIP - which will cost you much less but give you so much more flexibility.

And do you really need to rent an office when you can be tapping into technology wonders, working much more cost-effectively from the comfort of your own home?

Have you considered that mobile broadband might suit you better than a fixed broadband connection? Imagine being able to work absolutely anywhere at any given time!

Then there are laptops which replace desk computers in most ways. So you can be more flexible - taking a laptop offsite to other locations. Where once you may have needed two computers, you can now save time and effort with just one brilliant laptop. Maybe your work consists exclusively of going online, in which case you should consider getting a Netbook or a UMPC.

If you need to cut on staff costs, why not outsource? Outsourcing allows you to tap into outside expertise only when you need it - so you are not paying any permanent employee running costs. Everything from reception duties and sales to stacking boxes can all be outsourced to specialists. This leaves more time for you to focus on your core business needs.

So thinking 'technologically smart' is vital to growing your business, especially in the event of an economic recession.

However, it is unfortunate that many business owners are too short sighted to make these upfront investments (so they certainly don't reap the long-term benefits). Then there are owners who simply refuse to adapt and keep abreast of a changing world. Sadly, it is these businesses that go by the way of the dinosaurs, becoming another number in our economy's statistics.

Now is the time to be at the forefront of new technological strategies. Think cost-saving, think smart. Avoid becoming another statistic and start cutting your costs today!