HBR's 10 Must Reads on Managing in a Downturn, Expanded Edition (with bonus article "Preparing Your Business for a Post-Pandemic World" by Carsten Lund Pedersen and Thomas Ritter)

5 Ways to Stimulate Cash Flow in a Downturn

by Eddie Yoon and Christopher Lochhead

HISTORY TEACHES US VALUABLE LESSONS for managing cash during a nasty downturn. Companies that successfully navigated prior crises pursued cash-flow strategies that were both radically generous with customers and partners—and thoughtfully aggressive with near-term revenue and expense management.

These may seem like opposing ideas, but in reality they perfectly balance the empathy required to persuade customers to help while ensuring the economics of the business remain sound.

To achieve this balance, leaders can take five complementary actions:

1. Secure Sales by Taking Risks with Warranties, Guarantees, and Return Policies

Companies can secure near-term revenue ...