A business plan is very important during recession time compared to the time during economic boom. This is your single most important document during economic downturn. As far as my experience with software industry is concerned, I believe that working and functional plan of actions are the key area of thrust during recession.
- The functional plan should address the strength and weaknesses of the company. How the improvement can be made in those areas as a short term or long term feature so that it can satisfy Shareholders’ and Managements’ objective. It should also focus on current financial situation of the company. Scenario analysis is a very effective business plan from my standpoint. A good business plan should include the scenario like what is your revenue, expenses, and cash flows in case of deflation or inflation.
- You should conduct aggressive marketing during recession time. This move will increase your market presence and pay off well in the long term basis after the recession is over.
- People are going to have cash crunch during recession time. You should offer them special offers and discount to attract more people.
- Recession is the good time to innovate new idea. You can use your idea for the sake of the company so that sales and services of your company can be enhanced.
- You have to look forward in terms of your projected revenue vs expenditure. To do this, you have to do a market analysis. Some items like commodities are recession proof. Other items like luxury goods are more vulnerable to recession. You need to customize your business plan in accordance to the product or services you cater.
- You should also pay special attention to modernize your technology. Better technology cuts the cost of your product and offers improved product or services to your customer and makes them happy at the same time. It pays well in the long run.
- You are not the only person who is affected due to recession. It is nice to have a good business advice from business newspaper or peer network. You can also join forums that focus on your area. You will realize that lot of people like you are asking for help for their new business. This is a good place to exchange ideas.
- As a leader, spend more time in the field with your employees. Reevaluate your Business Plan and all the strategies. If you don’t have a Business Plan, this is the time to do it. Also,you should review your mission and vision statements to figure out whether they are in line with the existing market.