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What to Do in a Downturn?

Published: 1/14/2009 1:00:03 PM

Economic recessions are difficult and this one is no different and perhaps even more difficult than others. But what do you do with your company during a downturn?

Other than the usual "hunker down and get through it", an economic downturn can be an opportunity for you to do any or all of the following:

1. Get rid of unnecessary expenses that seemed "necessary" at the time.
2. Reach out to potential partners, with plans to cooperate when the economy turns around.
3. Increase your company's potential leverage by preparing your expansion plans.

You will notice that the last two items are related to looking forward and preparing your company for the inevitable economic upturn. The technology industry is similar to the real estate industry in that the companies that make it through the downturn with the greatest amount of leverage when the economy turns up are in a position to create a tremendous amount of wealth when that happens.

So, slim down and get lean, while looking ahead to the inevitable upturn.

Cheers,

Don Jones

VentureDeal

 

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Don Jones
CEO, VentureDeal

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