How to prepare your business for a recession and practice frugality

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One of the US's richest self-made women explains how her company established a 'culture of frugality' that withstood the Great Recession

Elting attributed TransPerfect's resilience to what she called a"culture of frugality." As entrepreneurs plan for a recession, here are Elting'sTransPerfect started as a translation service that worked with clients in a variety of industries, including the legal, pharmaceutical, telecommunications, and mining industries. That meant it never relied on the success of any one market.

She advised entrepreneurs to take this approach if they want to continue generating consistent revenue during economic crises. For example, she waited two years to hire any employees and did so only once the company reached $500,000 in annual revenue. The company established financial goals as markers of its growth. For example, one employee started at a new location with a monthly sales goal they had to meet before they could hire another employee. Then those two employees had to meet a monthly sales goal to hire another employee, and so on.

 

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