Top 10 Best Recession Proofing Strategies

After the worst bank failure of all time and quickly followed by the second, very little people would argue that we are not in a recession. Some even say the beginning of a depression.

Well, I've been thru them before and I've studied companies that have come out of a recession a winner. With crisis' there is great opportunity.

So here is my top 10 list of the best strategies to do in a recession. These will keep you fresh and ahead of the pack. Innovation is the key to performance, growth and valuation.

1. Hire talent. Some companies are laying off really good people because they are simply getting rid of paychecks. Snatch these talented people up. Talent is the single most important variable in innovation.

2. Increase your risk. I know you think I'm crazy, but with many companies going out of business a business that is too conservation will join the masses and go out of business itself. Don't be conservative. Fight your instinct to be conservation. Be bold or die.

3. Increase New Product Development. You need new products and services to grow. Don't stop this. While other companies are stopping product development you'll be coming out with cool new stuff and have a bigger share of the market. With fewer offerings in the marketplace you'll attract more clients.

4. Increase your technology. Spend money on your business automation. Streamline your business operations with Information Technology. Social networking requires a larger conversation with your clients. Use Information Technology to get more done with less human resources. We can help you get the tools and processes to streamline your business.

5. Go global. Just because there is a recession where you live doesn't mean that it is worldwide. Other markets are doing better. Emerging markets bring in new revenue, talent and business models. Get out there and spread yourself around the world. With technology today it is easy to be everywhere.

6. Innovation as key strategy. While other companies are replacing their key strategy of innovation with cost cutting, you will be innovating. It's hard to turn back on innovation once growth returns so don't do it. Keep innovation your key strategy. Changing investment strategies when the economy changes means the company is doing something fundamentally wrong.

7. Keep your performance metrics. Many companies change how they evaluate projects for risk during a recession. Keep your metrics the same. Changing them will increase risk-averse behavior and this is again hard to change back.

8. Go flat. Don't change to a command management model. You need fast decisions making and you need your talent to feel included in the decision making process. Becoming a dictator will alienate everyone. Keep your company in a flat collaborative model where innovation can live.

9. Keep your growth oriented people. Don't replace them with cost cutting people that will cut your company to shreds. Since most recessions last a short while the cost cutting people will be around once growth returns and they won't know how to grow. Keep and attract people that can help you grow. Grow while everyone else is shrinking. Get that market share when it is easy.

10. Bring in outside talent. Don't wall yourself in. Cutting out consultants can save money quickly but bringing in outside people increases innovation. If you are not open to outside consultants and their innovative ideas it will help your competitive position. I'm available for outside consulting and can help you increase your innovation.

Keep learning don't cut back on learning. If you cut back then it will create huge gaps in your capabilities. Your people will leave because they are not being innovative and when growth returns you won't have the talent to grow.

Of course you don't want to spend money you don't have so look at cutting back on travel. With phones, webcams, and web applications you can do everything right from your home. Look into cutting your salary before your people. You probably can handle the cut more than they can. Don't spend too much on technology, there are many free and open source software that can do what you need. Hire a good IT consultant that knows their stuff, like us. We can help you have the perfect systems and be mobile. Don't rely on software sales people to tell you the best deal.

Reward the behavior you want in your people.

Winning companies always make it out of a recession. And they almost always beat the competition based on innovation. During the last recession Apple worked on iTunes and iPods and when growth came back they destroyed their competition. Implement this top 10 list just like Apple did and your company will come out on top.