The recent news that commercial lending giant CIT Corp. is filing for bankruptcy can't be good for small and mid-sized businesses that rely on easy and cost-effective access to credit in order to survive.
Although experts are indicating that the short-term impact for retailers will be modest, there is less certainty about the impact by spring. John Holub, president of the New Jersey Retail Merchants Association indicated that the economy might turn around by this time, leading to alternative financing opportunities.
What if he's wrong? Banking (no pun intended) on a stronger economy is not a great strategy. Companies should always have contingencies for the worst economic times. Anyone can manage in a good economy. Surviving in a tough economy takes preparation and foresight, two key elements of effective management.
What strategies are companies putting in place to keep costs down and to maximize productivity? These should be the areas of focus. There is never a time when good expense management is unimportant, but there are times when it is paramount. Now is such a time.