Downturns test business models. Companies that come through strongest usually prepared long before conditions worsened, building flexibility into their finances and operations.
Cash is strategy
A strong balance sheet lets a company keep investing while competitors retreat.
Flexible cost structures
Variable costs that fall with revenue reduce the pressure to make drastic cuts.
Customer relationships
Loyal customers with high switching costs provide revenue stability when new sales slow.
Key takeaways
- Cash is strategy
- Flexible cost structures
- Customer relationships
