How to Prepare for the Next Down Turn
You may say, “I’ve got a backlog stuffed through 2019 and 2020. I don’t have time to think about the next downturn.”
Here are 3 things you can do to prepare for the next downturn:
- Tighten Up
- Build a Treasure Chest
- Strengthen Relationships
- Tighten Up
Look at your overhead and your processes and tighten those up so that you can be maximizing your profitability on every single project that you run.
- Build a Treasure Chest
Maximize profitability so you can build a treasure chest. Cash is king in a downturn. Cash gives you flexibility. It gives you a timeline to continue your business and also a means to take advantage of opportunities that come up in a downturn. Make sure you’re building your war chest of cash, today.
- Strengthen Relationships
Lots of guys are running and gunning at the moment and relationships can get frayed as you go from one project to the other. Make sure that you focus on relationships with your general contractors or subcontractors, your bankers. Strengthen those relationships as much as you can even in the crazy times so that when the bad times arrive they’ll be there for you to help you with projects or to help you with resources that you may not necessarily be able to get hold of.
Get ready for the next downturn. It’s coming. I hope you are so that when you get there you can take advantage of every opportunity that comes with those challenging times.
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