Business leaders report that they are taking measures to insure their firms' survival as fears of a recession grow.
This newsletter's parent, Information Strategies, Inc., has surveyed more than 6,000 business leaders on what actions they are taking under the threat of reduced business activity.
Respondents reported numerous options they are either implementing or considering. The five top actions reported are:
- Build up cash reserves to at least three month expenses.
- Maintain current employee staffing and to reduce inventory as much as possible.
- Increase the sales/marketing effort and renew ties with critical client.
- Seek better payment terms from suppliers.
- Plan projects that can be done with current staff if there are slack times.
According to JoAnn M. Laing, ISI's President & CEO, just six of 10 respondents said they had implemented plans to reduce expenditures or previously planned outlays.
Of these respondents, 51% said these reductions were more symbolic than actual but almost all said stronger measures were ready should sales or other indicators prove negative.
When asked if they expected their companies to do better or worse in terms of sales and profits, 79% reported a positive outlook with only 8% saying they were experiencing negative results as compared to last year at this time.
ISI will conduct the survey again in June.