These are great times for top stock investors to forge ahead. Business management professionals can use the current market environment just as well. Adversity brings out the best in the skilled and talented. Darwin’s Law applies to business and stocks: only the best will adapt to challenges and survive.
Credit has become a competition driver in 2008. The best of Wall Street has crashed because they splurged their dollars. Untold numbers are in grief because budgeting illiteracy has brought wolves to their home doors. Big business, if the Fed is to be believed, is in danger if interest rates do not head down. Cash flow experts never had it so good.
Marketing Guru Peter Drucker invented 4 Ps for the Marketing Mix. That was decades ago. Here are 5 new Ps. Use them, whether you are an investor or a business person, to turn a tight money market to your advantage.
1. Plan: make a cash-flow budget. Remember to update it every time you make a fresh commitment, such as a purchase on credit.
2. Prioritize: let productivity act as a filter. Never buy unless you simply cannot wait any longer, or if nothing cheaper is conceivable.
3. Provide: put money aside to deal with your worst nightmares. Hopefully, you will not lose your job, but it never hurts to stay prepared.
4. Prod: can customers pay earlier? Perhaps a new supplier will be happy to sell on credit. Does your logistics chain abuse your generosity to support competing brands?
5. Persist: no one coughs up cash first up. Keep asking. There may be no obvious answers, but cash could await a careful search.
Prudence is the watchword of people and corporations that rise above tight credit conditions. It is an occasion for top business and stocks to emerge in shining light.
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