"Some businesses will find that the downturn creates opportunities for growth, but for most it's a case of finding a way through by changing, disrupting and continuing to innovate."
I feel fortunate as I have not had to work through a climate as tough as this before, but steering Lastminute.com through the 2001 stockmarket crash and beyond certainly taught me how to cope when your company is being battered. This downturn is very different to 2001 though. When the dot-com bubble burst, the financial crash was much less severe and the effects weren't felt on the high street.
There has been an absolute explosion of media since the last downturn and with this multitude of coverage come some scary headlines.
There is no arguing that it's going to be horrible but despite what the headlines suggest, society is still functioning - people are still going about their daily lives, going to the supermarket, buying the odd treat, going out for occasional fun. It is important not to become carried away with what the papers or TV or web is telling you. Instead, you need to focus on what you're doing and what your organisation is doing.
Lean thinking for lean times
All businesses need to look closely at their cost base. I've always operated a lean organisation in my businesses, but it's an essential practice at the moment. Cash is crucial in this climate and it's no time to be wasting it.
Some businesses will find that the downturn creates opportunities for growth, but for most it's a case of finding a way through by changing, disrupting and continuing to innovate.
You need to keep things interesting for your customers and make changes with confidence. Remember that innovation can come in lots of forms - it could relate to your product, a clever marketing idea or a new pricing strategy for example - and it doesn't have to cost a lot of money.
Deliver greater value
I was once lucky enough to hear Bill Gates speak. One of the things he said that has stayed with me was that if you're not worrying about your customers, someone else will be. When Brent Hoberman and I were setting up Lastminute.com, our mantra was 'don't just aim to satisfy customers, aim to delight them.'
Businesses that can go the extra mile and deliver greater value for their customers - and perhaps some light relief - should come through this downturn well. At Lucky Voice, we recognise that this January might not be as busy as last year, so we're offering free room hire to low-paid public sector workers. Running this offer won't cost us anything and it'll help to generate customers for the future, but more importantly we're doing a good thing.
Online opportunities
Online usage continues to go up. In November 2008 the buoyant financial results from ASOS showed us that there are still enormous opportunities for taking a share of the online market. I've also seen the potential for online growth through my role as a non-executive director of mydeco. The rate of growth may be slower than it was, but it's still fast.
If your business is just starting out, it's going to be an especially tough time. Like any business, you need to look at your cash flow and conserve cash as much as possible. If you've just managed to raise money, resist the temptation to splurge and instead consider lying low for a while longer than you would have done in other conditions. Whatever stage your business is at, the key to surviving the downturn will be cash and funding.
Martha Lane Fox launched Lucky Voice, which aims to bring singing back into daily life, in 2005 and is a non-executive director of Marks & Spencer, Channel 4 Television and mydeco.com.
She is best known as the creator of Lastminute.com, which she co-founded with Brent Hoberman in 1998.
She is also founder and Chairman of Antigone, her own grant giving foundation.
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