As always with this type of question, there is no straight answer, other than - it depends!

Undoubtedly, the impact of the credit squeeze, the increasing price of borrowing and the continued hikes in the cost of raw materials are having a big impact on business globally.

However, in economic downturns, there are as many winners as there are losers. The question you should be asking right now is - in which camp do I want to be?

There is a saying that "when the going gets tough, the tough get going" and this has to be your mantra if you want to be one of the winners.

It is no good complaining about the state of the economy - there are enough people doing that. It is no good blaming the banks -they're still open for business and for good business propositions, there is always money available.

However, the days of cheap money and a queue of people waiting to help you refinance are long gone and good riddance I say.

So what can you do to ensure that you are one of the winners and that you continue to deliver exceptional growth within your business?

For one, take these five simple steps;

1. Don't panic - think positively and do everything that you can do to manage your way through the potential downturn.

2. Review your business strategy - is it still relevant or do you need to make some changes

3. Manage your cash rigorously - as long as you have sufficient cash, you'll survive and thrive - see 9 ways to improve your cash management

4. Review your operational capability - are your people deployed in the right areas of the business to maximise profitability and what can you stop doing that won't impact your future profits?

5. Manage and communicate openly with your key stakeholders - staff, management, banks, shareholder etc.

History has shown, time and time again that the companies that emerge from a downturn as sector leaders are those who proactively undertake a strategic, financial and operational review now, whilst carefully and positively managing the different agendas of their stakeholders.

So, if you want to be a winner in this downturn, apply these five rules now.

Posted by Tony Lockwood - 16th July 2008

How will the credit crunch affect your business?

The feeling of success....

...take your business from where you are,
to where you want to be! START TODAY