Seven Key Actions to Ride Out the Economy

March 2009
by Hank Salvo
All the economic forecasts I read for a global turnaround vary from eight months to 18 months or more. The wine industry is showing that it is not immune to the impacts of this recession. While we all tend to get wrapped up in the operations of our businesses, now more than ever it is important to step back and take key actions to grow cash. Understanding how to protect and enhance your cash position will give you the flexibility to ride out this downturn. On the brighter side, when the turnaround comes, you'll be in a better position to take advantage of the rebound. Here are a few of my thoughts on this:

How to grow cash and equity

Run a new profit scenario that forecasts volume down from last year. You can decide the decrease, but I recommend down 30%-50%. If this sounds doomsday-ish, that's my intent. Scenario planning will give you an idea of just how bad the bad news could really be.

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