It seems like I can’t watch, listen to or read the news right now without being surrounded by doomsday forecasts about the economy and fear about how the world markets will respond. At the local level, we see jobs being lost, we listen to colleagues who are worried about their investments, and we see businesses shut down for good.
Let’s put this into perspective though.
The Irish economy goes through an economic downturn every decade or so. We’ll pull through this one, and we’ll pull through it again the next time it happens. Economic downturns weed out weak players – strong players will not only survive, but will also place themselves in an enviable position to take advantage of the tremendous opportunity that lies ahead.
Here’s what to do to be a winner:
- Get your mind focused on what you can control, and the opportunities that exist. When we’re immersed in so much negative news, it’s easy to get scared – what will happen to me? Start by turning off the TV. Then look for positive influences and people who take this climate as a welcome challenge, and are looking for opportunities.
Immerse yourself in an environment where people are seeking the positives, and you’ll find your mind has more energy and is ready to accept that opportunity when you find it.
- Trim the fat. It’s easy for expenses to creep in over time; now is the time to examine each one. Phone bills, office supplies and insurance expenditures are areas that should be reviewed annually anyway – get that done.
Re-negotiate payment terms if possible. Each employee must make a tangible contribution to profit, with numbers you can measure.
“Cleaning house” is one of the most difficult things any business owner faces, but realize you’re not doing anyone a favor by keeping them on, if they can’t contribute business in the short-term.
- Stay liquid. If you know your business will seasonally have a negative cash flow, line up financing now (standing order systems/retainers/cash in advance)- before you need it. Tighten up credit/collection policies. Charge penalties for late payment. Refinance long-term debt for lower monthly payments, or pay down debt entirely.
- Your current clients are worth pure gold. Go the extra mile to retain them.
- Go where the recession is not. Many industries do just fine in a recession, and the folks who are employed there make good target clients:
Repair Industries – “Stuff Repair” industries do well when people stop buying new and start repairing or maintaining what they already have – cars, houses, roofs, plumbing and electrical. “People Repair” industries do well all the time – doctors, dentists, physical therapists, pharmacies, etc. “Business Repair” industries also do well – debt collection, business advice, marketing – these have to be positioned properly. Now is the worst time to pull back on business development, systems and marketing.
Staples – Death, insurance and taxes never go away. Who are the solicitors, accountants, funeral directors, insurance and energy professionals who need your service or product?
Stress Management – High stress needs high-stress management – massage, leisure “escape” products or services, therapy, life and health coaching are products people will “not let go of” in an effort to maintain a sense of togetherness.
We cannot control the economy. We can absolutely control our response to it. Understand what you can control, and then go do it. Use a coach to hold you accountable. Look for the opportunities, and you’ll come through this downturn stronger than before.