The Recession Is Here … What to Do Next
If you do not recognize it, it is here. I have witnessed each economic downturn since the Nixon Administration. Companies (who do not have a recovery/contingency plan) are already reacting. For some small businesses, it may already be too late. Laying people off and the suppression of spending are not the answer. The next sixty to ninety days will test our courage as we endure the ‘shock’ of the fallout from the COVID-19. It is up to sound business leadership to emerge stronger from this fallout.
1. As quickly as you can, put together a triage plan (next 30 to 60 days).
Assess you cash position
Develop 3 options based on the severity of the business environment over the next 30 to 60 days
Prioritize your human and operational resources and associated costs and overlap these priorities with each of your options
Quickly develop a communications plan with your customers and vendors.
Assess your sales options and customer retention plan within your customer base
Develop options to slow payments to vendors, if necessary
Work with HR – how are you going to communicate with your employees
If you need to lay off or furlough employees, develop your messaging and timing plan. (DO NOT string these decisions out over time. You will kill employee morale and productivity – when you need them the most)
2. Develop a plan to take your company through the rest of the year.
What is your recovery plan?
How will your organization harness marketing to drive demand?
Identify technologies that can make your people more efficient. Reduce costs by streamlining and simplifying processes with your organization.
Re-invent your marketing engine. Target weaker competitors.
Change your sales approach. Use portfolio management and train your team to bring ‘insight’ to your targeted customers and prospects.
Make doing business with your company easier and become a more responsive organization.
Develop and implement performance-based employee evaluation processes.
Emerge from this recession a stronger entity – transform your business into a flexible, responsive, flat organization built for speed.
