Contingency planning for a downturn

It’s important to have a contingency plan in place to cope with a sharp economic downturn. The scenarios below describe four stages of decline in company profits, and outline measured responses and stated goals for each.

The objective is to emphasise new sales opportunities, enhance margins and reduce costs.

The ultimate goal is to protect shareholder value and minimise job loss. The business can then stay open to “bargain” opportunities to expand via acquisition.


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