The numbers are out; yes the economy is under slump. The GDP is down. The core sector growth numbers are down.
You can look at all these facts and comfort yourself and convince that’s precisely the reason your business is not doing well
AND SIT BACK AND watch… for the things to unfold.
This is what 90% of the business owners do they let the economy and market conditions dictate the future of their company and miss the incredible opportunity the whole situation presents
SO what you can do about it?
You can learn from top 5% of the successful companies in the world. Here are some of the things you can do
Start deleveraging the balance-sheet: Most of the businesses are highly leveraged on debts. When the recession arrives, this is one area where the companies are hit the most.
In this situation, the funds are squeezed, line of credit goes down and consequently business suffers. In such situation, the successful companies actually have a systematic plan to reduce debts over-time which frees the cash-flow and also reduces cost.
Targeted cost reduction plan: These companies have two-five year cost reduction plan in place. This way they know when the sales drop in the recession, cost reduction plan will sail them through this mess.
Cost reduction plan could be in terms of procurement savings, automation of process, cost of delivery and fulfillment and many other relevant stuff
Stay Agile and Flexible: The key to navigate the recession is to structure the organization in such a way that all the resources of the organization can be utilized. There is little room for latent capacity and also at the same time embracing the new technologies