Downturns and recessions are cyclical and a fact of life; the questions are when will they occur and how deep and long will they last. Our federal government is able to facilitate a bailout of some extremely large institutions that hold a lot of bad debt not only in this country but worldwide. The effectiveness of the bailout programs on our current financial crisis will not be known for sometime to come.

This not being the first recession that our firm has navigated through does not mean that it will be any less painful or stressful. I did not like the last two recessions (in the early 90’s and again in 2001), but as we did then we will continue to provide our clients with the quality service that they expect and deserve.

In retrospect having these tough times ultimately make our company stronger and makes me a smarter business person. Challenging situations sharpens our focus and makes us rethink of how we have been doing business versus how we could do business better and be more competitive in our industry. Collectively our company pulls together as a team working more effectively in tough times. We take less for granted and appreciate what we have.

Here are a few thoughts on how to build a stronger business during this current financial situation:

• Build your customer base. A diverse customer base is best so that if one aspect of industry is slow hopefully the other areas of your customer base will continue to provide your business sustainable revenue.
• Conserve cash; for we never truly know when we are going to experience those “rainy days”. Develop an annual budget, and stick to it.
• Attitude, keep it positive, negativity is destructive. As a leader it is very important to remain positive. Your staff will be motivated by your example. It is essential that staff members know that they are appreciated and necessary for the success of the business.
• Procrastination can be deadly. Decisiveness is key. Timely and prudent decisions need to be made regarding cost cuts, and this often includes staffing. As harsh as it sounds, an economic downturn is an opportune time to weed-out staff members that are weak or who, perhaps, have a negative effect on the performance of others.

Recessions are never something we look forward to and this one is a humdinger!! But through hard work, smart thinking and trust in our fellow citizens we will get through this one and hopefully become a little bit smarter and more appreciative of what we have.

Happy Holidays from all of us at Brookstone Builders, Inc.