A number of insightful economists, investors, and business leaders are calling the current and foreseeable economic realities “the new normal.” We believe there is wisdom in this mind-shift. Whatever “normal” is, we know that we won’t see it or experience it until longer-term strategies are deployed relative to debt on every level, and sustainable spending levels. We do not break God’s laws of stewardship and responsibility; they eventually break us.
The business community is the “tactical deployment” arm of the economic structures the nations have agreed to function within. As such, they are both restrained by those structures and called to prosper within them. If economics drives the nations, the business community supplies the ingenuity, energy, and fuel to do so.
We are limited by the major flaws within both the current economic system and the current political administration. Nevertheless, we can begin to do the following things:
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Reduce business debt by all means possible without crippling our ability to provide essential products and services. Negotiate debt reduction if necessary.
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Postpone growth investments until they can be financed primarily through retained earnings.
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Secure your relationships as much as possible with your best clients, suppliers, financiers, and “core” employees. Strong businesses are built on strong relational foundations both internally and externally.
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Prepare a “strategic reduction plan” wherein you prioritize products, services, employee compensations, and the order in which you would reduce their hours, pay, or severance order. Do all that is possible to retain key people and all they produce for the organization.
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Pray in business opportunities. If you don’t believe in prayer, watch and see what happens.
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Put extra effort into soliciting input from employees, advisors, spouses, and business colleagues as to how you could implement new efficiencies, products, services, or clients with minimal capital outlays.
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Consider bartering for products or services with other business leaders where it would be mutually advantageous.
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Do not engage in rapid expansion because the markets appear to be “going back to normal.” Until the core issues that caused this global re-set are resolved, more waves are coming.
The goal of riding this period out is survival, market-positioning, and the ability to seize opportunities safely when they appear, and they will. Crisis culls out the less prepared and creates higher visibility for the survivors. Be one. This current situation is all about creative adaptation and preparation to take advantage of the contractions closing down one set of options and opening up another set. This is TheTransforum; let’s engage.
Related Resources:
For more information on the author, Dennis Peacocke, go to: http://www.gostrategic.org/
