But cutting these variable costs often takes time to have an effect .In the short term,both families and companies often need to use their reserves ,that is , take cash from their savings and investments .If the difficulties continue ,they can borrow money using their assets,that is,by re mortgaging their home ,office or factory .By using these reserves or assets, individuals and business can survive until their situation improves .Losses are relative :losing several million pounds is unthinkable for a family ,but may only be a small percentage of a medium -sized company 's revenues.