Strategies for a Recession

D. The Future

A recession is the time to take immediate action but remember that these are cycles and sales will get better.  With a long term plan for the future, you can look for opportunities to establish new relationships, build off existing customer bases and hire new skilled employees for the next growth cycle. 

During recessions a strong manager will continue to interview and look at new employees even as you let weak members of the team go to protect gross margin.  During downturns, other companies may offer you an opportunity to fill a key position when they let go an experienced employee.  Stay close to the market. 

Force yourself to look critically at your product offering and your staff.  Watch competitive actions and see if a weakness can be converted to an opportunity.  A weak competitor may be forced to give up market share or a product advantage.  As senior management, you may find yourself talking to old customers that your growing business forced you to delegate to salesmen.  Use these opportunities to validate market conditions and research future products.  Tough times may also allow you to change your own employees’ behavior (those annoying issues that never seemed important enough to make “waves” with key employees.)  Use these opportunities to strengthen the company, build for the future and reduce future expenses. This would be a great time to review sales entertainment expenses, traveling procedures, tipping policies, hotel selections, over-night shipping costs, warranty expenses and other issues that damage the bottom line. Review all costs and demand creative ways to accomplish routine requirements.  Look at outsourcing, new distributors or reps and new vendors, always with the intention to strengthen the company for the next sales cycle.

Also see:

Strategies for a Recession - The Plan

Strategies for a Recession - The Customer

Strategies for a Recession - The Sales Call