Wednesday, April 29, 2009

Top 10 Survival Tips for

Surviving a Recession
Adapted from the article “Managing Through a Crisis: The New Rules,” Business Week

  1. Take advantage of the current situation of the economy.
    • “History has shown that crisis breeds opportunity.”
    • “Look for prospects.”
    • “A recession creates winners and losers just like a boom.”
    • “On the whole, U.S. businesses face a $238 billion wave of debt maturities that will come due by the end of 2009.”
  2. Executives have to lead “their people out of a psychological funk and at the same time tailor their business to focus on a new reality.”
  3. Change your tactics.
    • “You can’t rely on a peacetime general to fight a war. The wartime CEO prepares for the worst so that his or her company can take market share away from players who haven’t.”
  4. Get the funds needed to help a business grow.
    • “Only those with strong balance sheets stand a chance.”
  5. Strive to increase your market share.
    • “The pie is getting smaller, and less nimble rivals are getting weaker.”
    • “Don't wait for your competitors to fall to the ground.”
    • “Take steps to solicit new customers at a time when others are cutting back on service.”
  6. Ensure the stability of your workforce
    • “Hire away their best people while taking steps to make sure they don't grab yours.”
  7. There are deals to be had out there – take advantage of them while you can.
    • “Buy assets from cash-strapped rivals on the cheap.”
  8. “Abandon strategies or products that don't fit the core business.”
  9. “If you have to cut costs, start at the top.”
    • Top executives should know that “the last thing you want is for people to perceive that you're in it for yourself.”
  10. “If you have a product you believe in, now is the time to make a bigger investment—not a smaller one.”

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To read the FULL ARTICLE from Business Week, please click here.

Thornton, E (2009, January, 8, 5:00PM EST ). Managing Through a Crisis: The New Rules. BusinessWeek, Retrieved January 9, 2009, from