Even if your organization is in fairly good shape… it is difficult not to get completely caught up in the uncertainty and fear that’s gripping several men and women.
We’ll have to patient even though the past financial excesses — such as massive consumer debt loads, housing bubble to extreme valuations, commodity and energy cost spikes and drops that sapped the buying power out of people’s pockets… then pulled the rug out for the producers — all work their way by means of the system.
And that patience will need to take the form of correct action to shore-up your present business — although keeping your eyes open for the unforeseen opportunities that will inevitably present themselves.
On a large picture basis… this is ultimately all for the better… because we’ll be able to start fresh from a far more stable vantage point. But, in the meanwhile, we’ve got to weather the storm in the “crisis economy”… and make sure our own “mini economy”… and personal house are in order.
So… how about you?
How are you coping with your own uncertainties and fears? For my own part, there are several assumptions I’ve had to throw in the wastebasket as this crisis has unfolded. I didn’t count on a complete financial market implosion and freeze-up (I doubt many people did). I knew there would be a contraction back when the housing boom was in full force. There was just no way that home costs could continue to rise so far ahead of people’s ability to pay.
I’ve been looking to my own experiences in organization dating back to the early 1970′s. And even although we’re in uncharted waters now… the very same basic “universal laws” and human nature will continue to apply. You can count on everything going to extremes in both directions — with the majority of individuals ultimately becoming wrong (just like always).
But, this time IS different… and it’s happened at breathtaking speed. What’s at stake now goes way beyond a company downturn — since people’s attitudes have been fundamentally altered. Unless there is some unforeseen softening of what’s occurring that permits folks to once again feel at ease and become complacent… we will require to alter our approach to enterprise for some time to come.
And, assuming your enterprise makes it through with a full head of steam… you’ll be in a excellent position of strength to take advantage of the upside enterprise correction that will inevitably arrive. Those displaced will get readjusted — and individuals will when again uncover their niche… and get back to being productive.
The Freedom to Fail…
Through all the recent events surrounding large-finance and large-organization bailouts, it’s tough for a small company owner not to wonder, “Who’s looking out for me?” And… “Why really should they get these massive sums of income when I have to work my @%# off for what I get?”
Truth is… as constantly (and as it need to be) — we have to look out for ourselves.
The only way government can give us cash — is to take funds from others who are productive and profitable… or borrow… or “print” it — in order to give it to those getting bailed out. And all that bailout income normally does is to perpetuate the bad circumstances that caused the difficulties in the first location. And the needed corrections (liquidations) of improperly invested or leveraged assets is not allowed to take place.
Frankly, it is not up to government at any level to be responsible for… or to present solutions to… independent for-profit businesses that exist in a totally free enterprise economy (that’s assuming we still have one). It is up to us, individually and working together.
The only factor that does make sense is for government to present a stable and level playing field for all businesses to exist — sink or swim — and to foster an environment where fair-play and non-coercive competition can vie for the buyers in the marketplace. Only the buyers themselves can decide true and fair value. Only the buyers — who vote with their wallets — can decide if some thing really should be produced, or need to continue to exist.
Needed Corrections…
Present circumstances and the crisis are years in the generating. There has been a long series of bad decisions and poor policies that have encouraged folks to go into debt… and live beyond their means… for some time now (dating back to the early days of the credit card, circa 1967).
These are the actual-life kinks acquiring worked out of the program.
Government, by it’s really nature, can’t possibly have all the answers. Just think about who these folks are, for the most part. Or rather… who they ARE NOT. They are for the most part NOT people who’ve run companies, met payrolls, been profit-focused, or had to be P&L (profit & loss) responsible to other people.
If anything, all the hand-wringing and rhetoric from governments around the world show clearly is that they have no clue how to deal with the troubles. And, they are the ones (at least here is the States) — who created a lot of of the issues in the 1st place. It’s not only the economy that requirements restructuring…it is the arrogant tax and invest mindset of politicians that needs to be taken out to the woodshed for a harsh lesson or two. Your Own Personal “Mini-Economy”
So… what’s a difficult-working business owner to do?
There is a show on CNBC, “On The Income” — where I initial heard the term, “Mini-Economy” to describe your personal financial circumstances. And it makes perfect sense. Thinking of terms of your own scenario as a total, self-reliant unit makes it possible for us to then take into account all the components.
1st of all… make certain every of the major key areas of your enterprise is finding correct consideration, attention, and scrutiny. Don’t make assumptions — check it out for yourself — so you will personally know what’s accurate.
If you rely heavily on specific suppliers or vendors — go to them if possible, check the news and the trade publications, and find out if they’re having troubles. The last factor you want to do is have some thing that is selling appropriate now (or the components for it) — suddenly turn into unavailable to you because you have lost your supplier. Exact same holds true for service providers.
If you have just one banking relationship… Go Get More! Proper now, relying on just one bank… 1 merchant account… or 1 online payments gateway… is a fool’s game. If your bank goes under — or if processing gets frozen up for any reason — it could take your business down (specially if you are heavily reliant on credit cards). You could even want to consider how you can encourage the use of money in your business.
Correct now, back-ups and alternatives for all key aspects of your organization are crucial… so you can have a “program B.” And, to whatever extent you have time for a bit of additional effort on this front now… it will serve you nicely to contemplate them in advance. If there’s trouble on the horizon for those you rely on… you’ll be greatest served by finding as far ahead of it as possible.
Copyright 2009, Guerrilla Profits International
