Both USA Today and the Wall Street Journal reported today that major U.S. stock indexes have dropped around 15 % since October, which puts them dangerously close to the 20 % mark that analysts usually consider the start of a bear market.
Assuming that we may be headed for a down-turn, if not a recession in North America, how are you recession-proofing your business? Are you knee-jerking, following the herd and cutting back or do you have a strategy to spot or design opportunity scenarios for your business during a downturn?
Wise SME's who have survived several recessions will tell you that there are more opportunity windows during a downturn or recession then in an upswing. Why ? Because everyone is chasing the same transparent opportunity scenarios on the upside and while most are on the sidelines in a recession.
Example:
- If your top competitor exits your market space or goes out of business, what opportunity windows open up for you?
- You need key staff and Yahoo announces major layoffs (that's an easy one)
- Can you renegotiate better delivery and payment terms with suppliers who might be hurting?
Do you have a formal opportunity recognition process in your business geared to recessionary circumstance?
Also see related posts on the Opportunity Clinic
The Opportunity Clinic-swapping opportunity scenarios 08-002
and
Do you know how to spot or design new business opportunities? 07-053
Comments