"Quantum Leap" Economic Survival Strategies are ones that generally require the combined effort of two or more groups including governments, businesses, unions and citizens. They do not replace or override the basic things that must be done by all organizations and individuals such as deep budget cuts, re-prioritization of what is important, getting after collections, looking for new revenue streams and so on. Many "Quantum Leap" Economic Survival Strategies are an integral part of our Global Insights "Quantum Leap" Getting Globally Competitive Business Model and its associated Economic Survival Strategies; however I have given a very simple example for a small business with personal loan guarantees in the two paragraphs that follow: As soon as a small business owner sees that bankruptcy of his business is unavoidable, the owner should immediately stop paying all taxes, as well as fixed cost leases and loans. The business owner should keep paying employees, and serving its customers. Should inventory run short, the business owner should use cash from continuing sales to purchase it. Once this is done, the business owner should notify everyone with stopped payments that they will resume when the businesses revenues go back to acceptable levels. In this notification, the business owner should be specific that they will not honor any personal asset guarantees towards business leases and loans and put everyone on notice that the next step the business owner will take is to stop all payments of on fixed leases and loans on the individuals personal side. Note: The power of this move is that it signals the two main groups responsible for the business owners dilemma that they are being held accountable with cash not votes or legal contracts. In an economic collapse cash is the prime driver and the business owner must maintain control of as much cash as possible for paying himself and his employees and keeping his customer base. Note: The legal bankruptcy processes will become overloaded and may fail completely so business owners should take on the responsibility to renegotiate all variable and fixed costs whether they are contractual or not. |
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"Quantum Leap" Economic Survival Strategies |