Survive the Downturn - Plan Ahead

Extract from ICAEW report: 8 Ways To Survive The Downturn

Find out how taking a long-term view can help your business survive the downturn.

It is all too easy to focus on quick remedies at the expense of the long-term view.

As well as concentrating on the immediate challenges you face, revisit your growth plans and strategy: are your assumptions still valid?


Prepare contingency plans

Consider a number of different scenarios:

* What are your options to take advantage of any strategic opportunities that arise?
* What steps do you need to take now to ensure you are well positioned to take advantage of the economic recovery when it comes?

Ensure that you have contingency plans in place in each case.


Review new and existing markets

Now is also a good time to review new as well as existing markets. Where are your key markets and customers, now and in the future?

Be prepared to examine these critically. Are you reliant on a major company or market? Are any of these at risk?

You may be unable to do anything in the short term but an over reliance on a major customer can threaten the viability of the business. Regularly obtain credit reports and get feedback from staff in contact with them.

Consider international and global markets which may present new opportunities.


Think about your competitors

Also, think about how your competitors are faring: how are they likely to respond to the current crisis? Does this present an opportunity for you?

Collect information about your competitors from staff, suppliers and customers: it might help to identify potential opportunities.

Source ICAEW - full report can be downloaded by clicking here.