Recession blues #3: now is the time
Take note of the 2nd extreme approach to surviving the recession.
There are two extreme approaches to surviving the recession: the ‘batten down the hatches’ approach and the ‘now is the time to stand out from the rest’ approach.
Each seems to appeal to a different style of owner when there may actually be a more sensible middle path.
Now is the time to stand out! Recession, what recession?
A more contrary view than the ‘batten down the hatches’ approach is to see the downturn as the time to stand out from the rest. Investing in your people; creating and selling new products; reinvigorating your business promotion activities and generally shouting from the rooftops that you’ve never had it so good.
By implication you are saying that you are better/safer and more reliable/successful than your competitors who are clearly struggling.
This high-risk strategy will get you talked about but the real concern may be about your stamina to survive the prospect of literally haemorrhaging cash should your cunning plan not pay off. So, how deep are your pockets?
The most dangerous time in a recession is after its peak. This is the time when you really need to be able to invest in the business to take advantage of the turnaround. This is the time when you are most vulnerable and you probably have the least spare cash to invest in your future survival!
The truth about how to approach the recession probably lies somewhere in the middle of two extremes: On the one hand don’t talk your business into receivership (reducing prices may well be the first nail in your coffin), but on the other hand don’t be stupid (spending money unnecessarily).
A systematic, structured approach to your business should get you through the bloody battlefield ahead. The first thing you need to do is assess your current business performance. Realistically look at your current activities and make some sense of what is going on.
