After listening to the media talk about economic outlooks throughout 2009 and the volatile stock market, business survival has become a major concern for many business owners for 2010 and forward. Companies should be focused on strategies that can allow opportunity for growth, even though the economy may appear stalled or changing.
After the historic bank sell-offs and companies folding and/or filing bankruptcy, the stock market volatility, and all the media coverage regarding the state of the economy, it is no wonder business owners are unsure about the future growth of their businesses. Instead of being concerned about how long a recession or stalled economy is predicted to last, businesses should be focused on what could be a good outcome with the money that the federal government is putting back into the economy. What effect will that have? Nobody knows for sure but it will do something. At least businesses shouldn’t see the value of almost every asset class continue to come down. So, rest assured, everything should work out, and business will go on. There are opportunities all around – let’s seize the moment!
I spend a lot of time reading articles related to marketing, leadership, and economic outlooks. While some economists predict a short economic downturn and are optimistic, other economists are stating the downturn is likely to be steep, long, and turbulent. How do successful businesses adjust, position themselves, and play on their strengths with such an unsure future?
Now is the time to determine where you stand. A tropical storm viewed from a weather satellite looks more or less uniform, as if every area is affected with equal force. However, on the ground, the picture is much different. I remember when my parents’ home was hit with a tornado in Pinellas Park, Florida, in October 1992. Their home was hit hard. Many in the neighborhood lost roofs, walls, and entire homes – yet others remained intact. It is not unusual for one community to be devastated while another one a mile away escapes unscathed.
So it is with business storms – a sharp downturn affects everyone differently. Analyze strengths and vulnerabilities. Each business owner will have different answers to three critical questions:
1. How would a slowdown affect the industry in which you compete?
2. What is your company’s overall strategic position within that industry?
3. From what financial resources can the company draw to weather a downturn or stalled economy?
The best strategy depends on where the company stands in the areas set out above. For example, if a company is strong financially and has a positive financial position, then the strategic and industry position allow a variety of options. One may want to out-invest competitors in marketing to increase customer loyalty. One could also attack or even acquire weaker competitors, and price products to gain a greater share of the market. One may be well positioned to lead consolidation within the industry, or to dominate critical market niches by concentrating on financial and marketing strengths.
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After the historic bank sell-offs and companies folding and/or filing bankruptcy, the stock market volatility, and all the media coverage regarding the state of the economy, it is no wonder business owners are unsure about the future growth of their businesses. Instead of being concerned about how long a recession or stalled economy is predicted to last, businesses should be focused on what could be a good outcome with the money that the federal government is putting back into the economy. What effect will that have? Nobody knows for sure but it will do something. At least businesses shouldn’t see the value of almost every asset class continue to come down. So, rest assured, everything should work out, and business will go on. There are opportunities all around – let’s seize the moment!
I spend a lot of time reading articles related to marketing, leadership, and economic outlooks. While some economists predict a short economic downturn and are optimistic, other economists are stating the downturn is likely to be steep, long, and turbulent. How do successful businesses adjust, position themselves, and play on their strengths with such an unsure future?
Now is the time to determine where you stand. A tropical storm viewed from a weather satellite looks more or less uniform, as if every area is affected with equal force. However, on the ground, the picture is much different. I remember when my parents’ home was hit with a tornado in Pinellas Park, Florida, in October 1992. Their home was hit hard. Many in the neighborhood lost roofs, walls, and entire homes – yet others remained intact. It is not unusual for one community to be devastated while another one a mile away escapes unscathed.
So it is with business storms – a sharp downturn affects everyone differently. Analyze strengths and vulnerabilities. Each business owner will have different answers to three critical questions:
1. How would a slowdown affect the industry in which you compete?
2. What is your company’s overall strategic position within that industry?
3. From what financial resources can the company draw to weather a downturn or stalled economy?
The best strategy depends on where the company stands in the areas set out above. For example, if a company is strong financially and has a positive financial position, then the strategic and industry position allow a variety of options. One may want to out-invest competitors in marketing to increase customer loyalty. One could also attack or even acquire weaker competitors, and price products to gain a greater share of the market. One may be well positioned to lead consolidation within the industry, or to dominate critical market niches by concentrating on financial and marketing strengths.
Bookmark this on Delicious
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