In the business world you may have heard the phrase 'Box clever' or 'Box above your weight'?.

This expression refers a individual or businesses ability to deliver results above and beyond what would be expected for their size, experience or capability.

During prosperous times even the most lethargic businesses can survive simply by 'being there' and answering their phone to customers. When the economic cycle edges toward recession (as it appears to be now), allot of 'fat' is trimmed from the business community and effective businesses are clearly separated from lethargic ones.

As a business that has been through various booms and busts over the past 16 years (some global and some local), we can speak from first hand experience on this topic.

During a economic slowdown here are some typical responses:

• Reduce employee numbers,
• Cut back advertising,
• Engage in 'price wars' with competitors,
• Devalue products (heavy discounting) at the expense of future development,
• Redefine 'essential' business requirements to exclude important productivity tools,
• Cut back on spending for any non-essential item,
• Demand more from staff while providing them with less tools to accomplish tasks,
• Cut back or eliminate extra training.

As a result of these responses, here are some typical consequences:

• Some superficial immediate savings show up on balance sheets,
• Sales drop due to decreased product exposure,
• Customer satisfaction drops due to decreased service levels,
• Employee frustration increases due to increased productivity pressure,
• Culture of fear often spreads within employee ranks,
• Products become devalued and therefore receive lower levels of support,
• Development of products or services are halted or stalled,
• Market share decreases due to overall drop in quality of service*,
• Business leaders falsely assume cutbacks protect them when in fact it accelerates them faster toward failure.

* It is important to remember that during economic recession, customer expectations of quality and service do not drop. If you lower your service levels to reduce expense you will ultimately pay a greater price in lower sales revenue.

Consider that if a business has a fear based strategy, a economic slowdown represents a crisis and a time of retreat...but for positively motivated business it simply represents a greater challenge and/or a requirement to change the mode of operation.

In objective neutral terms, all a economic slowdown really means for businesses is that the need to compete effectively becomes more intense.

In light of the points we have made above, it is quite ironic that these actions are most likely to help you survive a financial crisis:

• Give employees the tools they need to produce great results,
• Invest sensibly in services and products that set your business apart from others,
• Resist the 'wave of fear' that encourages 'knee jerk' or reactionary decisions,
• Consider carefully how you will differentiate in the market place and what tools and services you need to do that,
• Implement an action plan and remember to 'keep your cool' when everyone else around you is loosing theirs!

Nine times out of ten, if you follow these simple rules your business will not only survive a financial crisis...you will increase your revenue!

Make a choice today to approach the global financial crisis in a positive way and you will almost certainly come out the other side stronger and more prosperous than before.