Surviving the recession: chose your partners wisely
Recession is on everyone’s mind these days. Whether your organization is currently affected by the economic conditions or not, most of us are looking at your spending, to see if where we can save.
Another place to look is your partners: your business partners, your suppliers, your clients. If your main supplier goes bankrupt, it could affect your business as significantly as if your biggest client cancels all orders.
In a recession, the businesses that survive are those with the least debt and those with enough cash flow. As sales may dwindle from lower demand, businesses that are debt-free will be able to weather the storm, while those with a lot of debt would fold under the pressure of the payments.
Furthermore, recessions are good times to invest, to be ready with new offerings when demand picks up on the other side of crisis. Because demand always picks up, sooner or later. However, if all R&D activities are suspended while money is tight, the business falls behind its competition, and it’s very difficult to pick up that lag […]