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Two Perspectives on Business & the Economy for 2009

January 30, 2009

A Twist in the Tale by Economist Linda Nazareth

It is a twist in the tale, a changing of all our assumptions. Really, that’s not a too dramatic way of putting it. With the world in a global recession, just about everything is up for grabs. Thought that Generation Y was young and greedy and out to make the workforce all about leisure? Maybe not. Think that time is money and that convenience will drive products? Think that housing is going to finance a lot of retirements? Think again.

Prices. Policy. Demographics. Spending. Whatever you assumed about anything, maybe you better re-think it and come up with a different business plan.

In a very twisted way, it is fascinating stuff.

Don’t get me wrong, I am not enjoying this recession. In fact, most of the time I am something close to livid that so many errors were made one on top of each other and we ended up in this global mess. But gotten to it we have, and it means we are in the midst of a once-in-a-lifetime shift. Markets are adjusting, attitudes are adjusting and every industry and every sector will have to adjust too.

This is all while noting that yes indeed, the economy will halt its slide. In Canada, we are likely to stop losing ground as early as mid-2009, and perhaps the same will even be true for the U.S.. The bad news, however, is that we are not exactly going to hit the ground running in either case. The post-recession world will be a careful, parsimonious, one for many years. So many things were dangerously out of balance going into this that we cannot possibly go back to the pre-recession world anytime soon.

So yes, I am having a little bit of geek-type fun by picking apart the assumptions about what comes next. From consumer trends through to workforce ones through to the world of monetary and fiscal policy, things look – well – different. The world has tipped so that what was cool before is very much yesterday’s news.

Remember this though: no matter how much the kaleidoscope shifts, there are always ways to come out a winner. More than ever, however, understanding what is going on and preparing for what comes next will determine just who gets to stay ahead – or at least not get left behind.

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The Sky is Falling!? - Focus on Opportunities NOW by Business Advisor Sean Wise

Everywhere you read you see the sky is falling in business and we are in the midst of a global economic meltdown. But that’s not necessarily a bad thing, especially if you are in the sky catching business!  After all, every obstacle is an opportunity in disguise, especially for businesses and organizations who know how to turn a downturn into a windfall.

Historically, downturn economies are great times to start a business.  Don’t believe me? Just ask the founders of:   Burger King, the Hyatt Chain, Fedex, Microsoft, CNN, and Wikipedia; all were started in rough economic times.  All were started in downturns.  Buy why if the sky is falling is it a good time to get started and focus on moving forward? Here are a few of the many opportunities:

1) Hire Now – There’s an abundance of underemployed talent.  Layoffs mean that the supply of quality of people has never been higher. And with new jobs few and far between, less competition will make it easier to land them.

2) Buy Now - Bankruptcy Sales means assets are cheap.  A quick search of Craigslist, eBay or even the local paper will yield blow-out deals on slightly used office furniture, computers and equipment.  Why pay full price, when someone else already has?!

3) Explore Now - Fortune 500 Focuses on the Core.  During a downturn big business focuses on making their core competences more efficient - not exploring new markets.  This can often allow new entrants to sneak in and dominate those spaces. 

4) Innovate Now - Fortune 500 Cut R&D.  Again, during a downtown the focus is often on lowering costs, so new products and new innovation budgets can suffer.  This is good news for those startups or other companies who can innovate and set themselves up for future acquisition.

5) Market Now - PR & Marketing have never been so cheap. Again if the supply of people willing to pay to promote their business dries up, the price of such will drop. Good news if you are on a startup style budget.

During the dot.com bust Sean Wise was laid off by Ernst & Young.  Instead of wallowing in the lay-off blues, he took their severance package and launched Wise Mentor Capital.  Basically using their money to create a service in the gap left behind.  Now this dynamic speaker, considered one of Canada’s leading mentors for startups, shares with you: Best Practices for the Worst Times. 

Categories : Business/Finance/Economy, Motivation/Inspiration