As more companies go down, and an unrepentant writhing takes place as people follow the sense of fear pervading workplaces, I am left to ask… Were these big companies not smart, or perhaps should they have been conservative?

Ok a boom is a boom, bust is what it says and no one wants to go bust. So how then do you even out the ride and make things settle down into a form of business which can handle the tougher times. Get conservative, get smart.

There is heaps of info on business smarts, same probably for being conservative (chat to your accountant if you don’t follow…) the idea is to put in action plans to ensure  you cover your butt. Meaning put some cash away for a rainy day. If you have more than enough then you can invest some of the rainy day money (preferably into things which you can sell and turn back into cash readily.) then as the investments grow you might be in a position to take on some longer term assets which return an income (read rental property)

By taking this sort of stance you make sure your business has a back up plan and a solid foundation to build security with.

I guess it all comes down to the aim of the business, do you aim to be in business for the long haul and reap it’s various rewards, or simply take risks and live in the fast lane for a while… Conservative or smart, perhaps it’s both.