To continue the last entry in the series, we find ourselves at the end of December, staring at 2009 with trepidation and concern. We all now realize that we still have a number of difficult months ahead of us before we see an economic recovery and we also realize that individually we can't do anything about it. Or is that true? To the extent that we cannot change the global economy individually, it is true. But with the right activity and effort, we can change our own individual economy.
First, let's remember that the majority of the economic issues we are dealing with are emotional, not fundamental. Beyond the issues of liquidity and credit in the banking industry, the recession is due to the domino effect of businesses all cutting back at the same time. Doesn't make sense does it? So instead of accepting the herd mentality, go against the herd:
1) There are deals to be done and work to be had, yet you need to think about it differently. Companies are downsizing and will continue to do so for a while. Think like they do. What can you offer right now that will help them get done what they need to get done, yet do it at a lower price? Maybe you are already more efficient and can offer lower prices than the big outsourcing company they are already using? If not, maybe you need to be.
2) Time to invest. With everyone out there cutting back, there are some awesome deals out there. Some companies will be shutting down, many companies will be laying off employees, and companies are selling their wares at less margin. If you have the means, now is the time for smart investing to grow your business. And don't forget about credit. If you've been fortunate enough to maintain good credit, credit is available to you at very good rates (leasing or loans).
3) Too much recurring expense? Not a fun exercise but a necessary one. When is the last time you looked at your recurring monthly expenses? I mean, really wrote them down, added them up and asked yourself if you are really getting a return on each one of them. See where you can cut these recurring expenses and then use that money to invest in things that will grow your business.
Hope this has sparked some ideas. Please respond with your thoughts.
Jess Hartmann
ProMax Systems