1. E+R=O – Event + Response = Outcome. Get your mind focused on what you can control and the opportunities that exist. Look for positive influences and people who take this climate as a welcome challenge.
2. Trim the fat. It’s easy for expenses to creep in over time; now is the time to examine each one. Re-negotiate payment terms if possible. Each employee must make a tangible contribution to profit, with numbers you can measure.
3. Stay liquid. If you know your business will cyclically have a negative cash flow, line up financing now – before you need it. The bank will look at you more favourably if you go and see them before you need help than they will when you need help.
4. Your current clients are worth pure gold. Go the extra mile to retain them. Regardless of the markets you should always always look after your existing customers. 80% of your current income will come from 20% of your existing customer base.
5. Go where the recession is not. Many industries do just fine in a recession, and the folks who are employed there make good target clients. There are many industries and professions that are not recession impacted. Form alliances with these busy people and work with them to ensure you can share in the opportunities they have.