Recession What Recession?

by Andrew Shedden

As published in Small Business Canada Magazine

What Me Worry?

If you believe everything you see hear and read in the media we are entering a recessionary period in our economy. The way the media carries on it's as if all of us are totally helpless. Because the recession is arriving or is here we've all lost our collective decision making ability. You might as well close up shop today, auction your business off for ten cents on the dollar, and buy cheap wine.

The recession is like the old Roadrunner cartoon where Wily E. Coyote looks up and a giant rock is falling. He gamely opens his little umbrella and is promptly and thoroughly squashed. I have a novel suggestion for you Mr.Coyote, why not move out of the way?

Does a recession mean that you should just throw in the towel, cash in your chips, fold your cards, or take a long walk off a short pier? Does the current economic environment mean that we are powerless to dream, plan, and implement?

Everyone knows that recessions are as perennial as the grass, and cause layoffs and business closures. What few people consider is that recessions can have some positive effects:

Recessions force you to look more closely at your business

Recessions make better business people

Recessions make acquisitions easier

Recessions provide new opportunities

Congratulations…You're a Leader

To use an old aphorism, "Your attitude determines your altitude." The first mindset of growth within any business rests with its leaders. This is not to say that leaders should disregard the signs of recession that are all around them. True leaders are hardheaded realists in good or bad times. They see the world as it really is, not as an abstraction.

When you are a leader in business you need to have a very firm grasp on what is expected of you. You must be passionate about growing your business. Stability and conformity are not traits that will carry you very far. People don't want to be managed they want to be led. Those being led by you expect decisive action. True leadership is action. You need to work hard to help transform your team's thinking from fear and scarcity to steely resolve. You set the tone and example. You've heard it before, "It all starts at the top."

Look Beyond Current Processes in Your Business

Now is not the time for the faint hearted. When there's a downturn in the economy it's time to cast a cold eye on all of your business processes. You need to jettison all unnecessary expenses and have a laser like focus on even incremental improvements in efficiency. This means more than layoffs, "demanning" is easy. Some business leaders have the drive and vision to expand their way out of trouble.

If your marketing and sales activities aren't running at peak efficiency now is the time to modify them. Every aspect needs to be quantified and optimized. There is a misleading and limiting belief that marketing and sales improvements take a long time. In reality, necessary changes can be identified and acted upon with great speed.

Make sure that you actively get your employees involved and don't hide the truth from them. You'd be surprised at the number of great ideas that are just waiting to be heard. Spend some time and explore how your current products or services can satisfy new needs.

Look Beyond Current Markets

Once your marketing and sales processes are "tuned up" your next course of action should be to ensure that everyone in your business is on the lookout for new opportunities and new sources of growth. Make every employee become more marketing and sales oriented. Deputize and reward your employees.

Make profitable growth the watchword. Not all business growth is beneficial. In fact growth for growth's sake can be downright disastrous. Many companies have failed from growing too quickly. Make sure that you are finding good growth that will generate sales and profits. Don't rent your market share by price-cutting. If they come for price they'll leave for price.

From Retention to Acquisition

When there is a downturn in the economy you will have far less competition. While many of your competitors are digging in and focusing on customer retention you can aggressively acquire new ones. Remember that fortune favours the brave.

Hallelujah a Recession

Many people forget that profits were still being made during the Depression. The manner in which you decide to address these current economic times is, as always, totally up to you. Face reality for what it is and push on. Force yourself to be a better businessperson. Remember that "This too shall pass."

I am not trying to make light of the fact that economic downturns can be very hard on people. What I am saying is that with careful planning and positive direction you will survive this downturn and emerge on the other side stronger and better than ever. Once the economy bounces back you'll be amazed at the improved level of your business skill as well as your rapid and profitable growth.