In July of 1990, I told several
close business associates that we
were heading into a recession.
They all thought I was nuts.
Nonetheless, I spent the next
several months studying and
planning. And on October 1,
1990, I announced a cost-cutting
plan that shocked everyone in our
remodeling company. The plan
included the termination of five
new office employees hired to
handle the growth we expected
the following year, a 10% acrossthe-
board wage cut for the 20
remaining employees, and four-day
work weeks for some office
employees. The plan also
discontinued all office services,
and shut off all mobile phones.
Finally, it brought all our
insurance coverage to state
minimums, canceled medical
coverage for employee dependents,
canceled life insurance policies for
everyone, put