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UK, USA, Japan, NZ and parts of Europe are already in recession.

So what can you do?

a)review performance and efficiency of each staff member, focusing on rewarding quality, and being prepared to let others go

b) continue to find out what your clients and customers need in times like these

customer, client feedback forms are a good way of measuring client expectations, wants / needs, as is continued communication. ask the tough questions and be prepared to improve where needed.

c) plan cash flow more carefully, working with your accountant

d) be prepared to do more for lessfor your good clients, however also be prepared to cull bad clients / bad payers

e) implement early payment discounts / rewardsfor clientloyalty, this should improve cash flow

f) implement punitive measuresto preventslow payers from using your company as their interest free banker. Why should you fund their business?

g)run your ruler over the efficiency of your balance sheet and profit and loss statement. are you tax efficient? is your debt efficient? could some of loans be refinanced and be tax deductible? could they be secured against real property and the interest rate cut by 4% to 5%?

h) determine and regularly review KPI's

i) sell off non-core assets

j) sublet spare factory or office space

k) negotiate better lease terms, rent free periods, rent reductions. do not be afraid to ask for one if trade is down. you can bet your competitors will.

l) improve your systems and procedures to maximise efficiency of staff, training manuals etc. eliminate down time

m) review your profit and loss against weekly turnover forecasts, or at least monthly budgets

n) make pro-active decisions based on up to date information. mare sure your management accounts are kept up to date.

o) aim to continue to exceed your customers / clients expectations. raise the bar each time so that your competitors cannot keep up

p) continue to invest in your business through marketing and promotion, however test and measure each form of promotion. track all sales back to their origin, be it a referral, a google search, brochure etc. that way non-performing marketing can be culled quickly.

q) reviewdirect / localcompetitors regularly. are they having cash flow problems? are they providing deep discounts indicating that they may be going under? if so, do not enter the discountingwar, find ways to differentiate, offer more services, different products or package deals etc. do not follow them into insolvency!

r) remember - failing to plan in this economic climate, is planning to fail!!