A while back I read an article on How to survive a recession, which discusses how small businesses can recession-proof themselves and gives some good common-sense advice. Historically, small companies are been at greatest risk during a recession, yet being smaller means they are more agile, and so better able to make the changes necessary to survive and even prosper when the upturn comes.
The article recommends ‘working on your business not in it’. How well companies survive a recession depends on how the control their costs (which is the only thing you can control in business) going in. I see this as being a bit like taking a corner in a racing car. You have to slow down before a corner, and accelerate out of it. Taking the corner too fast can be disastrous, too slow and you loose time.
In many industries loosing staff through redundancy is the only way to make enough savings, so inevitably companies have to adapt to doing more with fewer people. The extent to which they can do that determines how well they can respond come the upturn.
Doing more with fewer people frequently requires a new approach. If your company is a systems integrator dealing with products that contain electronics, then irrespective of the sector you’re in, from aerospace to medical, getting products to market quicker will save you a lot of cost in design and help you leapfrog your competition. If you’re not using thermal design software early in your design flow then this can make a BIG difference. Take a look at the following chart, which shows how FloTHERM.PCB can reduce the number of board re-spins from almost 3 down to just one!