Surviving the downturn

Everyone wants to survive the downturn! The survival instinct is the strongest and most primitive instinct in man. Yet, only those who know how to survive will survive. In other words the “fittest” will survive.

How does one ensure survival fitness after the downturn has hit you? Here are few strategies (“laws”) that you can adopt to get on to the “fitness bandwagon”.

The first law of survival is focus. Focus on your business and its needs. Think out of the box and find ways and means of boosting income. Forget new schemes, marketing campaigns and promotional schemes. Concentrate on getting the old, existing schemes and your core business to work for you. Consolidate, trim and optimize on expenses.

The second law of survival is conservation. Conserve cash. Do not think of mergers and acquisitions. Do not try to acquire assets. All this will waste money. Focus on clients and potential clients who will promote your core business and bring in cash. All assets that are not needed should be converted back into cash. Reduce expenses even if it means letting some valuable staff go and reducing the workload on others.

The third law of survival is maintaining relationships. Have trusting relationships with clients and staff. You will find that they are a great support to you during the downturn. So, whatever the pressure you face, make sure your do not sour relationships with either your clients or your staff. They will remember how you treated them when the turnaround happens and you can cash-in on the goodwill generated.

The fourth law of survival is open, honest communication. Do not give way to paranoia and resort to being mysterious with your clients and staff. They will become frustrated and feel helpless. Open, honest communication is the best way of tackling the situation. Share your fears and hopes with your staff and get them to support you in the crisis. Unity will strengthen your hand. Those who are not loyal to you will leave. Only those who can be trusted will stay with you during a crisis and open, honest communication will reveal the best and the worst of the situation.

If things have gone wrong so far, it is time to stop and evaluate; review and think; remember and act.

Stop everything that you are doing and review your activities for flaws. Listen to what everyone around you has to say. Think hard and long on what you need to do and act according to a survival plan! Finally, remember that all plans are not rigid laws. They can be changed, adapted and molded according to situations. They are only frameworks for action and survival.

Be flexible, sensible and honest. Your survival will be a foregone conclusion! Make sure you have the survival mantra right and keep your business going during the difficult times. You will certainly reap immense benefits when the turnaround comes!

The Bean Countess