The Secret: The company that consistently breaks million dollar barriers has an better information. The top 20% have learned to find, analyse and leverage information.
Information: - The Ultimate competitive edge!
At Executive Outliers, We help executives and investor find competitive advantages. Because finding, analyzing and leveraging information gives you the edge.
For examples, check out our blog Article,
The economic expansion started about 10 years ago and just broke the record for the longest economic expansion in US history. The one thing to remember is that all economic expansions end in either a small, medium, or large recession. Are you ready for the next recession?
The decisions you make today will make a difference. Back in the 70's one of my mentors shared this advice,
“Hope for the best, Plan for the worst.” – Cicero Roman Statesman (46 BC)
After living through multiple recessions, the secret to thriving in a recession is early Recession-Planning. We see the businesses who plan early, succeed early. The symptoms and costs of late planning include: Layoffs, Lost market share, Debt and even bankruptcy.
In a recession, 80% of your customers will also be suffering. To improve cash flow, these customers cutback on the money they are spending with you. When customers buy less, your company productivity suffers. Suffers because total earning goes down, while the cost of earnings remains the same. Here are two statistics for mid-size businesses.
Each hour of lost production represents a $54,000 organizational loss
90% of businesses losing 40 hours of productivity in one month, are bankrupt within 12 months (60% of those are bankrupt in the first 6 Months)
This is why a recession can be so scary. It's also the reason why Recession-Planning is so important. By the way, "...hoping for the best" is not considered effective counter-recession planning.
“Create your recession plan, while you have the time. “
Planning early and planning for the worst is the first step (but not the only step) to building a recession proof company.
In the 20th century, the United States endured two world wars and other traumatic and expensive military conflicts; the Depression; a dozen or so recessions and financial panics; oil shocks; a flu epidemic; and the resignation of a disgraced president. Yet the Dow rose from 66 to 11,497. - Warren Buffet
Without a plan most people panic. We also know is that since the industrial revolution, the biggest fortunes have been made during economic recessions. The difference between struggling and thriving is, always in the strategic planning and plan execution.
At Executive outliers we help our clients "Recession-Poof" their organizations. We do this by making your workforce more productive and less costly. In the process improve worker productivity, EBITDA, EBITDA multiplier and ultimately business value. Whether in an economic expansion or recession, the result is the same. Customers, Owners and investors win as the organizations thrives and grows during economic downturns.
If you’d like to learn more about recession planning, Start with this article.
Contact us directly when you are ready to make a change.
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