Rules for Managing Growth During an Economic Recovery

• Just because the volume of work increases, avoid ramping up staffing too quickly. Hire carefully when rebuilding your organization.
• Many customers will continue to be slow paying for a few months into the recovery. Do not count on fast collection of receivables to aid in funding your growth. Look for other sources of funding.
• Inventories are tight at many suppliers. Suppliers may be slower in delivering goods for some projects. Provide adequate notice on unique items.
• Keep your “costs cutting” plan handy, because recoveries can come slowly and are not always a sure thing.

Source: Wall Street Journal, Enterprise Column, January 2002