What is the key to success in a recession?  In previous national and international economic slumps, some businesses have come out on top - here's how they did it.

Follow the information in these paragraphs and stay one step ahead of the ‘credit crunch.'

Firstly, take stock of your business

Every manager has an idea of what the company looks like, but the most essential task to complete in such a time is to get to see ‘The real picture', you must know exactly what you are achieving - identify what your business is good at, what are your strengths? Where are the weaknesses?

Awareness of these key details will give you the strength to keep ahead while others fall behind at these times.

Get back to basics

This is the time to make sure your business is working directly on the elements that matter, not ploughing ahead with unnecessary and risky ventures.

It is incredibly important for a business to take advantage of the ‘slow-down' in industry to make crucial structural changes while it is possible.  Also to:

• Support your existing customers; this will earn returned support in the long run
• Think carefully before investing in new customers
• Re-evaluate up and coming projects.  Are there any that can be scrapped?
• Make sure you have a strategy for functioning, and that you strive for business excellence
• Make sure all base costs are scrutinised - look at your essential purchases and make sure they ARE essential
• Encourage a ‘cost' culture
• Be ultra-aware of your brand

Make fast, informed decisions

Now is the time to act.  Holding out and waiting for the economy to take an upturn is the worst mistake to make. When the climate changes - you have to have changed to meet the new demands head on.  This is the difference between a company that shrinks and one that grows.

Make sure that:

• Your management hierarchy is strong
• Strong leadership skills are functioning
• Your supply chain is the best it can be, costs are re-calculated
• New risks in the industry are assessed
• You are ready to make quick, informed decisions on newly emerging problems

• You are flexible

Watch your CASH

This may seem the most obvious thing to do, but it can easily be overlooked in sight of the chaos.  You know the old saying about looking after the pennies... These simple steps should be taken:

• Manage cash as the priority
• Lower authorisation limits
• Increase procurement scrutiny
• Re-assess cash flow reporting
• Re examine your company banking policies and other financial arrangements
• Understand your stakeholders agendas - involve them in decisions and show them efficiencies with cash that you are making.

• Talk frequently with stakeholders to ensure you are prepared and there are no surprises

Amend your performance management measurements

At this time a business needs to recognise that it cannot use the same methods for measuring performance. The economy is changing, therefore so should your tools for gauging your success against it.  Many companies will have KPI's (Key Performance Indicators) in place to measure performance.

• Amend KPI's (or alternative) for current market
• Accelerate the reporting process for fast results
• Regular scrutiny of results with board
• Put in place extra indicators for areas of higher risk at this time

• Make sure critical information is available to the entire organisation and targets become company culture

Work together

Rather then let any added pressures in this climate pull your organisation apart; let it bring your people together.  An economic downfall is, after all something you are all experiencing together on various levels.

• Recognise strengths and reward people
• Offer new and exiting challenges
• Encourage good behaviours and team mentality
• Give opportunity for creative thinking
• Communicate
• Look to the inevitable upturn, and encourage your team to work towards it together