Talk of possible economic recession is appearing in the mainstream media. Recessions are part of a modern economy. They appear from time to time as a correction on previous excesses. As a result of an economic downturn, the economy can reset itself with much of the fat removed from the system. The issue for any entrepreneur, however, is how to make certain their own company survives the recession in one piece.
In a recesssion, the first priority of an entrepreneur is to keep the business afloat. As a result, many painful decisions may have to be made to ensure the company's survival. That's the bad news. The good news is there are many cutbacks, that can be made, that are not painful for anyone in the organization. At the same time, the recession unexpectedly opens up many business opportunities that didn't exist during boom times.
It's said that the same Chinese word is used for both crisis and opportunity. In any case, the wise entrepreneur should constantly seek those opportunities that will arise during an economic crsis. The key to discovering those new revenue streams is keeping an open mind and applying heavy doses of creativity to the organization. In fact, a closed mind and a lack of creative thinking will more than likely make your company another statistic of companies who failed during the recession.
Business failure might make for a morbidly intriguing news item, but it's not so good for you and your family. It's also a disaster for your employees and their families, and anyone else who depends upon your company's products and services. Instead of becoming another statistic, it's time to think in terms of survival and success. Don't let bad economic news discourage you. Take charge of the situation, and empower everyone in your organization to think in the same manner.
It's time to get creative. It's also time to get contrarian in your thinking. Whatever you do, following the crowd won't help you, unless you are very lucky. If you are like me, you will prefer thinking creatively to trusting to the vagaries of luck anytime.
The first impulse of most business people is to cut back on staff. That is the usual, and non-creative solution. Since massive layoffs are the usual technique employed by most other organizations, it should spark that contrarian streak in the back of your mind. If everyone is doing it, then opportunities arise where the markets are being abandoned. Your competitors are handing you their market share. Literally.
Instead of removing most of the employees from your payroll, make a careful examination of your staffing requirements. There may be one or two people who are not needed in their current role. The first impulse will be to lay them off. That should only be a last resort when all other options have been considered and exhausted. After all, you did see some talent and skills in the person when they were hired. The recessionary economy could have opened up exciting new ways to employ those skills. Always avoid knee jerk responses to problems. They are the techniques used by less resourceful companies than yours.
Along with maintaining and reorganizing your current staff, an unexpected opportunity will present itself. There will be many great employees made available by other companies. You may even know the people personally, and be well aware of their abilities. It could be the right time to add their talents to your organization. Keep in mind that while other companies are cutting back, you are seeking ways to grow and expand your business.
Let your staff help find solutions to problems with your cash flow, and with finding new markets. Hold brainstorming sessions to uncover unexpected cost savings. You may be surprised at the large amounts of waste take place in your company every day. Reward employees who find ways to save. Give them a bonus. You can even offer shirts or posters or some similar tangible item for the waste busters in your organization.
Seek fresh idea input from everyone from top to bottom. Leave no employees out of the discovery process. The best ideas often come from the least likely sources. Let your staff members take their plans and run with them. Their committment to the success of their own creations will astound you.
Keep an open mind, and encourage creative thinking throughout the company. Zig when everyone else is zagging.
Instead of cutting back during a recession, your company could expand as never before.
