We are witnessing a breathtaking collapse of business enterprises: from automakers and their dealers, to entire retail chains like Linens N Things, to restaurants like Bennigans.

 

How can the remaining businesses prosper?

 

Borrowing to stay in business, even to buy competitors is questionable.  Determining ROI of the borrowed money may be very difficult when sales are declining or profit margins disappear.

 

So, what to do?

 

In the 1990's IBM jettisoned many employees and manufacturing to grow their Global Services group: variable labor applied to fix contracts for IT support and other areas.  The PC group was sold to Lenovo which recently issued a tremendous loss; but it was probably just as anemic when IBM was the parent.

 

What element of a business can be turned into monthly revenues? 

 

Restaurant "dining club" or meal plans?

 

Service contracts on manufactured products?

 

Monthly servicing for car dealers or mechanics?

 

Vacation clubs for local motels?

 

A consultant can drive the conversation: for a golf resort, I proposed time-share like golf packages.  The deposits that this created filled the cash register during the slow winter season and led to higher occupancy and average daily revenue rates.

 

Being creative is not easy, but often the day to day grind prevents and postpones the brainstorming required to formulate the best plans.