Q #194: How to navigate a company through a turbulent economy?

In this series, Bob Morris poses a key question and then responds to it with material from one or more of the business books he has reviewed for Amazon and Borders.

In Duck and (re)Cover, Steven S. Little provides “the embattled business owner’s guide to survival and growth.” In fact, his insights and suggestions can be of substantial assistance to anyone

Duck and (Re)Cover

who has a number of business concerns. Here is his response to the question posed: How to navigate a company through a turbulent economy?

Little cites an old saying “that is both conventional wisdom and common sense: ‘Revenue is vanity, margin is sanity, but cash is king’…Margins matter, but more often than not, the cash created by a better bottom-line matters more. With these principles in mind, you should be able to ride out any storm. Things are going to be bumpy, but that’s hardly a secret. If you keep your head down but your mind open, the duck phase [i.e. an immediate and prudent response to a crisis] will probably position your organization for the smoother recovery phase ahead. In order to duck effectively, be sure you develop:

• A sound cash management monitoring system, encompassing all of the relevant data:

• A realistic understanding of which customers are worth the effort to retain.

• An organizational environment that fosters TRUST in the people who work with and for you.

• A diligent effort to create a crisis plan that is written, communicated, and regularly updated.

• A well-rounded team of objective, expert advisors.

• A comprehensive marketing strategy that puts you in the best position to seize the inevitable opportunities created by change.”

Comments, questions, requests, or suggestions? Please share them. They will be most welcome and I thank you for them. Best regards, Bob