Thursday, December 18, 2008

Running your business in tough economic times

There have been many, many businesses that have taken advantage of difficult times and positioned themselves for the future. Running a business in good times is almost idiot proof. It's what you do in tough times that makes the difference between a great business and a business that you just ride along with the tide. My rules for managing in tough times:

Train your people in an area that could increase gross margins (moth dollars and %)

Outsource, outsource, outsource

Conserve cash, delay investments, avoid the "buy more for a sale" mentality

LOWER your break-even point while RAISING your gross margin %.     

Focus on cash, conserve it and use it wisely.
 

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