Warren Buffet "nails it"

As this latest financial crisis unfolded over the last couple of weeks, Warren Buffett cogently summed up what was transpiring when he said "it is only when the tide goes out that you can tell who is swimming naked." By this he meant that in tough times those who do not have best practices or those who have cut corners will be laid bare.

In good times, almost anyone can be successful. A good economy and a customer base with loads of money can make up for a multitude of sins. Many fail to focus on doing things right or operating efficiency. If they did, they would be in better shape when the bad times come around.

It is not so different from the old Aesop fable of the grasshopper and the ant, one preparing for the winter, the other not.

Entrepreneurs need to focus on best practices. They may end up being a lifesaver.

Entrepreneurs need to think about bad times when times are good. It will keep them grounded and centered.

Entrepreneurs need to have a selling strategy and a survival strategy that preserves the business when times get rough.

If you are doing this only after times have gotten difficult, it is probably too late.