Could any rational company actually look forward to a recession? Here’s an article from the Associated Equipment Distributors that outlines how you can prepare for, rather than dread, an economic downturn. The article describes how Caterpillar actively planned for the 2008 recession and was able to produce a profit and advance its financial condition – despite a 37% decrease in sales.
Here are a few highlights from the article:
- Expect that today’s economic highs will end, and take steps well in advance to prepare for a downturn and to capitalize on it.
- Assess whether your company’s exposure to a recession will align with public reporting on the economy. Will you feel the effects before it’s official? After it’s reported to be over?
- Conduct “trough planning” so you can immediately act during a major swing in the economy.
- Take into account that many of your competitors are already preparing for a recession.
- Create an “unfair advantage” by developing a strategy to succeed regardless of economic cycles.