You are here

Ten tips for managing a business in a recession

Terry Frost, Forgetting Lorca, Flowers Gallery

The theme of how to manage a business during the recession is explored at Fortune courtesy of senior editor at large Geoff Colvin.

As the author quite rightly points out, managing through any recession is difficult, but the current downturn offers unique challenges because it is different to previous recessions in many ways.

Not only is employment plummeting but consumer spending is falling sharply and to make matters worse, consumers are in more debt than ever.

So, says Colvin, the question is, what do we do next? He suggests a ten-point guide:

1) Adjust your priorities to deal with the new reality.

2) Maintain core investment.

3) Communicate as much as possible, balancing realism and optimism.

4) Offer new solutions to your customers' new problems.

5) Don't rush to cut prices.

6) Focus on how you're gaining capital and where you are using it.

7) Re-assess your people and try to recruit more good ones.

8) Re-evaluate the compensation and incentives you provide.

9) Think carefully about offshoring strategies.

10) Consider the value of acquisitions and mergers in the current climate.

Source
How To Manage Your Business In A Recession
Geoff Colvin, Christopher Tkaczyk and Yi-Wyn Yen
Fortune