What strategies will position a business for success when the market improves down the road?
If you only focus on survival, you will most likely miss opportunities to capitalize on the upswing. This is a time when companies need to critically analyze their operations and put together a plan to position themselves to manage risks and capitalize on opportunities. A strong balance sheet can help a company capitalize on opportunities. After identifying risks, areas for improvement and opportunities, call a meeting with managers and key operating employees to discuss findings and form a task force of individuals who are committed and will implement the plan. This task force should include management and key operating employees as well as trusted advisers, e.g., bankers and CPAs. Your plan should address cash flow. Prepare a forecast at least 90 days out and keep it rolling one quarter ahead. Analyze assets that can be converted to cash, such as accounts receivables, dead or slow-moving inventory, and nonproducing property and equipment. Analyze debt and, if needed, contact key cred
