Recession - Groundwork for Future

It is the most talked and happening topic of present time- Recession.

Lets have a clear picture about it :

Recession : In economics, the term recession generally describes the reduction of a country's gross domestic product (GDP) for at least two quarters. [1][2] The usual dictionary definition is "a period of reduced economic activity", a business cycle contraction. (Wikipedia)

Now if I put it is simple terms – We have a situation where Companies are not able to generate revenues because the source of revenue (in many cases the end consumer – common man) is not able to buy or use services . Thus it effects the spending of company which results in reduction in support function which over all transforms into misery of same common man.

Now if you see it in positive manner , companies start looking very seriously at costs that they are incurring, they start analyzing their ways of increasing revenues , they start looking at their exposure in market . If a holistic view can be considered we are actually doing what should be done if healthy business has to be run.

Now let me come to the topic that has been used for this blog.
Recession is certainly groundwork for growth because:

1>You start managing your recourses in best possible way which improves your ROI.

2>You start managing your stock effectively that helps you to rectify any problems in working capital.

3>You start reducing your exposure in market , which helps in cash flow.

4>You start looking at innovative ways of generating revenues which helps in long term growth.

So conclusion that I can derive is ‘’Recession is not that bad a process as it is seen, one should be able to adopt practices to sail through recession and carry it in good times also so that in next recession company is in auto mode’’