Business Keys to Surviving the Current Recession

Working to survive the current recession? The monthly (first Friday) TechPoint New Economy-New Rules statewide gathering traditionally ponies up great info, but this morning (2/6) was exceptional. On deck where Daniel DeHayes of the IU Kelley School of Business and Andrew Cardimen, SVP of Harris Bank.
Videoconferenced throughout Indiana out of the revered Barnes & Thornburg law offices in Indianapolis, the pair covered sobering but practical advice that businesses - particularly those with revenue $50 million and under -- could and should be doing to stand the test of the current hideous economic environment. Here's a sampling:

• Is your company still operating on a value proposition developed prior to October 2008? If so, understand that your market is now different -- whatever your industry might be -- and you need to reflect those market changes. Regardless of how you do it, your company WILL be different after 2010 in terms of how it operates and sustains profitability (presuming you survive).
• In the current environment, the "cheap labor market" model doesn't work. You or your senior staff don't have time to train these people. As a result, you will either have work kicked up to you for redo, or you'll be putting out low quality work, which can kill your business.
• The downturn may well last through 2010. What are you doing now to prepare for 20 months of flat or no growth?
• You're probably managing to a budget instead of to a forecast. If you haven't forecasted your cash flow and are tracking it intensely, you're managing to fail.
• You're probably experiencing an increasing gap between promise and delivery. You must fix this immediately.
• You need to take a hard look at variable and (especially) fixed costs. Rising fixed costs will kill your cash flow.
• Your business process probably has added non-value steps. Trim these out now!
• Establish your brand as the company that ALWAYS delivers on promises.

There's much more. If you're interested (and I certainly was) in obtaining the rest of the story, shoot me an e-mail (msnyder@themekgroup.com).

Fortuna favet fortibus.