Many companies are still geared to growth and easy lending despite changes in the current economy. Having managed companies through several recessions I am aware of some simple facts and tactics.
* Look after customers even more closely.
* There is no obligation for a company to grow year on year. No management bible insists companies must grow although I would do everything I could to grow net returns.
* When cutting costs you need to be firm to the point of being hard – it is no good needing a second cut in a month or so. Grasp the opportunity to reorganise the roots and branches.
* Knowledge and know-how are hidden assets and may need some protection from drastic cuts but don’t be over protective.
* Consider putting the high earners on shortime pay.
* Tight cash management is easy to say and hard to face up to but your bankers will support a well run business.
I believe change is good and surviving through this current economic disruption will make your company better placed for the opportunities and situations to come.