by Graham Rose

Some companies will gain from an economic downturn, with a greater focus on effort and results. Research on how business is conducted, analysis about who does what, when and why is carried out, margins calculated and reworked and competition carefully dissected.

All this can lead to revelations and to better business efficiency promoting healthier returns.

It is also true there will be companies that, at the first hint of difficulties, lie down and die. They just find it all too difficult and do not have the will to continue trading.

The UK has experienced a long period of business growth and there will be those employees, managers and owners of businesses who have never experienced economic problems and are fearful of the consequences.

They will have read about the dark days of the 1980s with inflation in the teens and mass redundancies.

Tales of people being thrown on the heap' never to return to work will ring in the ears of the older generation. But much has changed.

Gone are the days when someone worked for one company all their life. Gone are the days when skills were not transferable. Gone are the days when training for new skills was beyond the reach of most.

When the national economy is growing, companies are running smoothly and demands for our products or services is expanding.

Life passes by, the money keeps coming in and management and staff are gainfully employed making, marketing, selling, delivering and after-sales supporting.

There is no time to sit and reflect, to take a back seat and ponder on the current position of the company and plan a new way forward. There is no need, the finances appear healthy and everyone is happy - owners, shareholders, customers and all stakeholders.

One approach to worsening economic times is panic - slash budgets, increase prices, cut down headcount, outsource more, reduce the product range, drop advertising and direct mailing, and reduce attendance at shows and exhibitions. And all this might be necessary!

But this should not be done in a state of panic, but after much thought and analysis of the key components.

What channels are you using to market and are there alternative channels that would cut out tiers of distribution and increase your margin? Is there a better route to market which could streamline the process?

Who do you employ and are they all productive? This does not mean are they all busy' - that is entirely different. Does the company have the right type of person doing the job, or are there functions where the position is redundant?

There is nothing wrong in taking stock. Downsizing' and making positions redundant can be a necessary evil for the survival of the company and those who remain.

Keys to successful downsizing include: o It should be fair and clearly explained to the person being made redundant and those remaining o The process must be conducted humanely, thoughtfully - and legally o Those remaining should be helped through the period o The team is rebuilt.

I often compare a team with the ingredients of a soup. You change the ingredients and you get a different soup. Change the composition of a team and you get different dynamics.

Think of the sporting analogy: how often does a football team perform differently with the substitution of a player?

It is often stated people are at the centre of our business and key to our success' and how true this is. A good example is the grumpy receptionist who puts you off and leads you, at the outset of your exposure to that company, to think negatively about the organisation.

But why are they grumpy? Is it that they have a role they do not enjoy, or actually do not like? Is it they do not fully realise they can make or break the business?

Is it a case of the wrong person in the role in the first place?

So the message is plan sensibly, analyse your business model carefully and take steps to build the business. The company could flourish - even in a downturn.

o Graham Rose, based in Appleton, near Cumnor, has experience in recruitment, sales and marketing and communications for both small businesses and international organisations. Contact: 01865 864026.