We will launch this as soon as people have a bit more faith back in the economy.Disruptive innovation is what most people refer to when they mention innovation. Most importantly, focus on things you can control. You must take immediate steps to reduce your debt. On the opposite end of the spectrum, construction and capital goods are highly cyclical and may be much worse off than general news reports. AirTran bought at cheap prices, and five years later they owned 76 planes with an average age of three years old.With this review of how to manage in a recession, planning ahead for a possible downturn will be easier.

2. After degrees including a Ph.D. from Duke and three years as a professor, I found my calling in the business world. The ability to borrow may keep a company in business or provide an opportunity to use the recession to improve its competitive position.A business that enters a downturn in good financial condition and cuts expenses appropriately may be able to buy companies or equipment or real estate at rock-bottom prices. Their 46 planes had an average age of 26 years old. If you have debt, you are not in control: debt means your creditors are in control. If you don't have cash, how can you get to a place of stability first? The Lastly, not all innovation is technological– often, it is Getting a grip on your business first is the top priority. You can face similar problems in leveraging these assets as collateral on a loan, should you need quick access to liquidity. Image credit: You're reading Entrepreneur Middle East, an international franchise of Entrepreneur Media.There is a popular meme circulating these days that asks: “Who is responsible for your company’s digital transformation?”As this joke shows, most entrepreneurs and businesses are struggling in the current environment, but Before I go into considerations for surviving the current situation, I want to talk about self-care. Keeping your business afloat during the current economic condition is difficult, but not impossible. A particular sector may not be hurt as badly as the headlines imply. If you already have stability, then this is an amazing opportunity to transform what you do, and thrive for what is certainly going to be a changed world after this crisis. This is critical. From protecting your cash flow to building your customer base, implementing a few practices in advance can help recession-proof your business so it survives and even thrives during economic … My friends and fans love their monthly fix of economic charts, a 60-second scan of the economy. Pipeline, ultimately, makes every business thrive.Once a CRM is set up, first think about how your customers are doing. To do both a company needs a customer relationship management (CRM) platform. That’s unpleasant, but the companies most likely to survive are those that act quickly.Businesses that offer trade credit must be adamant about collections. This is a much more bitter economic pill, but there has never been a better time to do it. Copyright © 2020 Entrepreneur Media, Inc. All rights reserved. Businesses that can survive a recession and take advantage of the buying opportunity are respected by banks, just at a time when commercial and industrial lending is declining. Reduce your debt. Many people are now talking about a crash or recession. That’s a good reason for keeping credit lines up. We are now going to launch a fund for renewable energy, so people who are out of the stock market can invest in a different, long-term annuity style product that offers a stable and high return. To analyze, plan, and get on top of this, we need to ensure that we are healthy, safe, and in a good mind space. A range of essential services like Sustaining innovation is around adding a product or a service that complements what you do, but is not part of your offering right now. The 2001 recession and the 9/11 attacks severely hurt airlines, especially those with higher cost structures. Your ability to empathize with people in your business and your key relationships will ensure support and loyalty. I’m the longest-tenured member of the Oregon Governor’s Council of Economic Advisors and chairman of the board of Cascade Policy Institute. That’s important to know because the media will be abuzz with doom and gloom.

The stock of product that a business needs in a recession is much lower than during good times, and the money tied up in inventory has better uses. If you don’t have visibility of your pipeline of clients, you are operating blindly. Providing services almost always requires the service company’s employees to be paid before the money comes in—and the money doesn’t always come in.Inventories must be monitored closely. However, during a crisis they can be extremely difficult if not impossible to sell and convert to cash. This is where you pivot your business towards serving a market need that you see, that you know how to deliver, and that will need to make business changes. If you don’t have cash, how can you get to a place of stability first?

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