Each day the global news media highlights the grim economic picture that the world faces, and many economists have agreed that the world is in a recession. Such turbulent economic times have not been seen in many years, and many have drawn similarities between this period and the recession of the early 1900s.
Undeniably, this dilemma impacts both big and small businesses, and it is imperative that all business establishments adopt proactive measures that will streamline their business while simultaneously expanding their revenue base. Within the past year, many renowned businesses have plummeted, but companies presently surviving are those that had - and have - foresight and vision and have thus been prepared.
The Freeport Harbour Co., located on the island of Grand Bahama in the Bahamas, is one such company that is surviving the economic challenges, due in part to the myriad of maritime services it provides as landlord, and, additionally, to having taken internal self-protective measures, which ensure its survival during these times. Moreover, the Freeport Harbour Co. has the good fortune of strategic location at the nexus of shipping lanes across the Eastern Seaboard of the United States.
Historically, this proximity has provided a major benefit which continues to reap dividends for the company and its benefactors. As a major transshipment hub, it is more economically feasible for vessels, particularly container vessels, to offload cargo at Freeport Harbour, as opposed to increasing their workloads by extending their shipping routes. This continues to stimulate vessel traffic throughout the harbor limits and, in addition, it promotes cost savings for shipping companies, which no longer have to extend their shipping route.
The Freeport Harbour Co. has been proactive in its economic approach and has streamlined certain aspects of its business unit in efforts to maintain a positive bottom line and keep pace with future challenges or changes. Strategies include:
- Improved communication and relationships with both employees and vendors through flexible and effective dialogue and negotiation. In so doing, we have created positive associations with both our internal and external customers.
- Re-examination of the annual budget and institution of cost-saving measures that provide for essential spending only. Each general ledger account is scrutinized to determine best returns or profits, and items that constitute either a loss or marginal profit are discouraged. Therefore, the company is better able to maintain control of both fixed and variable costs.
- Preplanning and quarterly revision of the business strategy ensures that all relevant parties remain abreast of company's progress, plans and areas of concern, regardless of which direction the economy turns. Thus, no one is taken aback no matter what unexpected challenges, whether financial or other, that the company finds itself facing.
- Providing concessions, such as reduced rates, to customers and tenants, whereby they are still able to operate their businesses. This not only assists the establishments economically, but also strengthens existing and future partnership relations.
- Scrutinizing and adjusting the business plan with a view of eliminating unnecessary or insignificant business strategies that negatively affect the bottom line.
Surviving in challenging economic times may prove more demanding for businesses that do not have effective support structures or provide essential services like the Freeport Harbour Co. Nonetheless, adopting one or more of the above strategies may be the determining factor of whether your business survives or not during these times.
