In times of recession, people's thoughts turn to survival. And there are a series of tried and true strategies for individuals and companies.
For individuals, it's about networking furiously, starting up or dusting off a blog and monitoring the job listings. For small companies and contractors, it's a good idea to lock clients into long term contracts.
But what about larger companies? How do you exploit the problems that your competitors are going through during tough economic times? Harvard Business Review has put together 4 Steps to Growth During a Recession.
Companies can start by investing heavily in research and development now so that they will have new products and services ready for launch as the economy begins to grow again. This will give them a strategic advantage over competitors who would be cutting back. Secondly, focus on the customers of the weakest competitors. Another strategy is to identify the most critical suppliers and distributors and finding out what their vulnerabilities during the downturn. And finally, identify and attract talented employees, while slack exists in the labor market.
All good suggestions. But of course, they only really work if you have a solid balance sheet, low debt, and bucketloads of cash.
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