With signs of an economic downturn appearing in late 2008, TEC Chair Brendan Killen asked a group of business owners who were members of TEC to offer their tips to each other on what they should do to survive and thrive during a possible significant economic downturn.
With the GFC easing, Mr Killen ran a similar exercise with the same group of TEC members and business owners to get their tips on how to manage through an economic upturn.
Interestingly, without prompting, they repeated most of the tips they developed for managing successfully through an economic downturn.
- Forecast, manage and maintain cashflow
- Build and maintain staff satisfaction
- Explore new and increasingly frequent opportunities
- Increase all marketing and business development activities
- Continue to concentrate on improving internal efficiencies and enhancing operating procedures
- Pre-empt the market by preparing staff and systems to meet the challenges
- Be financially and emotionally prepared to invest at the front end of opportunities
- Monitor and control fixed costs – don’t go crazy with unchecked optimism
- Review and develop your workforce capacity/capabilities – do not compromise on quality staff
- Don’t neglect what and who assisted you successfully through the downturn
- Celebrate your achievements with staff and customers – or engage with staff and customers
- Stay on top of fixed costs versus revenue
- Ensure that you have short term, responsive plans ready to implement if necessary
- Maintain strong, regular client contact
