1. Talk to people – Don’t assume
Talk to your customers
Talk to your vendors and suppliers (Look at point #2 before you do this so you can combine discussions as you see fit).
Talk to investors
Talk to your bankers
Talk to Employees
Talk to your spouse and family
2. Cut back – conserve cash. Think of cash flow before profit.
Do a line item inventory. Go through your P&L statement and stop spending on anything you don’t absolutely need. For everything else, call up your vendor’s and renegotiate.
Cut back on employees last (unless there are some you should have let go anyway – and this is true for many companies)
Cut back on Marketing second to last. The stronger you market in the down times the better position you are in
Cut back on prices as necessary. Understand where your break even is and what your marginal costs are. It may be smart to take some jobs or sell some product just to keep your staff employed. Be flexible.
3. Look for more ways to get more bang for your time (you thought I was going to say buck didn’t you? – you did that in #2 if you were paying attention).
[tags] CEO, entrepreneur, recession, small business, economic melt down [/tags]