I ask all my clients to consider this question at Board level. And it always shocks them.
“What would happen if our permanent Gross Profit (Net fees) dropped by 50%, and temporary/contract GP by 25%? And the drop occurred in a month and did not recover for two years. Would we survive?”
And I usually raise it when the going is good, and profits are at record levels. Like right now, for most of them. Because that is precisely the time we get complacent. We start to believe in a world of never-ending fat years. No thought is given to…