What would happen if your revenues decreased by 44% in one year and looked like they would continue to fall in the next 12 months?
Or increased by 30% rapidly and because of an unpredictable series of events?
The recent downturn in the mortgage market reminds us how quickly things can go sour. Countrywide, a mortgage lender, reported recently that the number of mortgage applications have decreased 44%. While the real estate slump and sub-prime mortgage mess might have been predictable, businesses were too busy raking in the money to create a contingency plan.
On the other hand, Lauri Toys, a USA toymaker says that her sales have increased 30% over last years’ numbers, all because of the spate of China-made toy recalls. Now she has to find more workers to build her toys and the big holiday shopping season is coming up fast.
Imagine your market has a sudden upturn or downturn: are you prepared?
For most businesses, the answer is a pre-planned strategy to deal with these types of events AND access to capital to weather the changes. Don’t stick your head in the sand and pretend it can’t happen to you. Create a plan to deal with these types of contingencies — including your own illness or disability, or losing a key team member, or a landing a big contract.