Are You Ready for the End of the Recession
OK, I know exactly what you’re thinking: what planet is he on? Can he read? Or, "I’ll take whatever he’s drinking". Before you hit the mighty “X” on your multi-tab browser, hear me out, please. First, a question: When is the best time to start a new business: in a booming economy or a recession? You’ll find the answer at the end of this blog post. For now, let’s go back to my original question and answer it with another question: Does it really matter? Not really. The issue of “business readiness”, whether your company operates at a high level of productivity and profitability, is critical in any economic climate. In fact, if your business operates like a "Swiss-watch", there is very little you have to do when business picks up – you are ready to grow again without the chaos that is typical “I’ve got more business than I can handle” (a topic for a later article). Performance metrics (Key Performance Indicator, KPIs), are essential for the business to move forward. It is a process of continuously evaluating KPIs and making the necessary adjustments. So when recession hits, the business may experience lower top-line sales but it gets to keep its customers because everyone from the janitor to the CEO are focused on creating value and a reason for customers to come back. Systems are in place and they operate efficiently in a booming economy or in a recession, but when the recession is over and sales increase dramatically THIS business doesn’t have to change a thing, it has been ready for a long time and has a long list of happy customers to prove it.
A KPIs-driven business can handle new customers without affecting service levels or profitability. This business is truly "leveraged" .
Now, the answer to the first question: Some of the most successful companies in our era have started their business in a recession (Apple and Microsoft are a just a few examples).