Good Morning from the desk of Shah Alam on a fine Saturday morning in the city of London.

As I look out of my window towards the gleaming towers of Canary Wharf the financial heartland of London. I can see the winds of change have affected one of the banking residents of the complex more visually than others. The Citigroup tower no longer has the companies logo surrounding the four sides of the building. Where the logo stood with the distinct umbrella now they are empty like the eyesockets of a skeleton.

The global banking crisis we are told has been the worst in a lifetime and the last time we were in a major recession was back in 1992 when again property in the UK and US nosedived and repossessions were at record levels.

Now I am not going to judge the business models the banks used to generate revenues and profits, at the end of the day that's what businesses are there for, to generate revenues and profits for their shareholders. What I have a problem with is the bail-out offerred by the various governments around the world.

Simply put, companies just like individuals should be held accountable for their actions and pay the price of those actions. The bail-out sends out the wrong signals to the general public and corporations. The question I have is, if my business were to go under today and I had to let go of say 1000 people would any government bail me out? The answer is NO. So the answer should be a stern NO to these banks.

Having said all that what does this mean to businesses in the coming 18 to 36 months when the recession will begin to bite in more ways that one. 

Well firstly, we in the business world should be aware of the cyclical nature of the economy in our respective countries and now globally. It has been 15 years since the last major economic slowdown so this one is near enough on time albeit a bit later than usual given that the global economy has been bouyed by the easy credit bubble that we have been experiencing.

Secondly, the best time to 'batten down the hatches' is when the going is good. Corporations should have been looking at a systematic approach streamlining their businesses and eliminating waste and cost wherever possible. This prevents the knee-jerk redundancies of thousands that we see in the news. This is not only happening in the banking sector but also in toy factories in China and mining companies in Kazakhstan.

Thirdly, it is not bad as it seems, there is no need to jump off the 18th floor. The recession will be over before we all realise, this is evidence in that it is more than 12 months since the sub-prime crisis in America emerged and the first casualties in the banking sector were being rescued or going under. It may be another 2 to 3 years before we see any sign of strong recovery, which is a blink of an eye in the business world, especially when we're all trying to get through these tough times.

So what can businesses do to get through this rough patch:

1. Perform a review of the operations of your business, employ specialists this will help save time and money as well as bring objectivity to the process
2. Implement recommendations from the review
3. This may entail stopping loss making operations
4. Develop a clear concise and appropriate business strategy and stick to it
5. Be creative and launch new products/services, because the current economic climate will mean a lot of people are cost cutting. Look at ways how your company can fill that need.
6. Make changes in management, because if the incumbent team were unable to prepare for the current climate then they will not be able to get you out
7. Weekly performance reviews and business updates with everyone, management sould keep the finger on the pulse and be proactive at the earliest signs of issues and opportunities
8. Plain HARD WORK, I cannot emphasise this point enough. In corporate Europe and America office workers spend 60% of their time on non-value added, non-work related activities, which is a massive opportunity to tap into.

Well! the sun is out now and as I conclude my musings for this week, I wish all of you happy hunting for the coming week. Till next Saturday.

Shah

PS: There are opportunities galore out there, this is a fantastic time to buy undervalued businesses, lock in low prices, negotiate better terms with suppliers. Think laterally and reap those rewards personally and for your organization.