6 replies to this topic

[InnoPack07]

Definition ECONOMY: the efficient use of resources.*

The state of the economy as is heavily referred to in the press is the result of an inefficient use of resources, and ultimately companies paying somebody more than they are worth, or paying another company for something not worth the price.

If we care to change the scene in the economy, we will have to work effectively and efficiently to produce our products and services, otherwise there will not be improvement. As a country, we will go further and further into debt, with inflation soaring.

Think about it - if every single adult American had a job and was worth what they were paid because they produced a valuable product for their company; there would be no welfare, no unemployment, no need for crime as each would be earning his living, and a heck of a lot more happiness as one would be contributing fully in proportion to what they are receiving.

The answer starts with each individual pulling his own weight, not waiting for things to "happen" but actually CAUSING them.

(Definition is from OneLook.com)

[aapromotions]

But you're in California as I am, so you can basically forget about it. Thank goodness I pay quarterlies to the state and always owe. Others may be getting refunds in IOU's.

[Chris Miller]

Sara,

You're spot on. We all need to do our part. I used to be union but lost interest in them long ago because of the corruption and support of those who don't deserve good pay. Its high time we all go out and give it our best, at ALL we do. Stop walking around like someone owes us something. WORK for what you want in life!!!

I like my signature ;)

[jmsadv]

I think what is happening now is a general lack of confidence...the average person is worried about their job. If they loose their job they could loose their house and so on...

There has never been a better time to buy a house with low prices and histoically low interest rates but I think people are worried that they may loose their job and are holding onto their money.
Our whole system of doing business is based on consumption. It all trickles down and really hurts an industry like ours. We are seen by some customers as an extra not an every day need.

[InnoPack07]

True, true. It is all about how you prove that you are indispensible as a service provider.

End Users want to keep their jobs. They have to keep their companies alove and doing business. You do that by creating want and demand for your products and services. That is a task in itself, but the only way we keep ourselves employed!

There are people who are making lots of money off of the downturn - based on where they are positioned in the marketplace. Foreclosure relief agencies for instance. Also, car mechanics. People aren't necessarily able to afford that new car, so they are concerned now more than ever about maintenance.

And then there is always the growing-despite-anything healthcare category. As the Baby Boomers get older, and need more care, those healt providers have a growing clientele...

[jmsadv]

I agree...there are always opportunities in a downturn and a down turn will usually shake out some companies.

[JasonBlack]

I thought I would share this post that I just put up over from the the New Economy board (a strategy discussion group for promo professionals).


This is an article I read this month in the Harvard Business Review meant for business owners.

The main idea of ?How to Seize Advantage in a Downturn? is best summarized by this quote, ?first, stabilize your business, protect it from downside risk and ensure that is has the [cash] liquidity necessary to weather the crisis. Then, and only then, can you identify way to capitalize on the downturn in the longer term.?

These are specific, challenging tactics meant to help you prepare your business for war.

I specifically recommend checking out the Recession Checklist, though not all parts may be applicable to your business?focus on some of the key fundamentals that should resonate with all business owners.

Take some time to read this and please share your thoughts--I've really enjoyed the discussions on this board--if you get the chance I also recommend you guys throw in your two cents over on the New Economy board as well.

It's open to the entire industry. www.boundlessnetwork.com/neweconomy


Jason
jblack@boundlessnetwork.com


A few highlights from the HBR?s Recession Checklist :

Monitor and maximize your cash position:
-Calculate expected cash inflows and outflows
-Produce a rolling weekly or monthly cash report
Tightly manage customer credit
-Segment customers based on their credit risk
-Assess trade-offs between credit risks and marginal sales
Reduce costs and increase efficiency
-Root out long standing activities that add little business value
-Consolidate or centralize key functions
Aggressively manage the top line
-Revitalize customer retention initiatives
-Reallocate marketing spending toward immediate revenue generation
-Consider more generous financial terms for customer in return for higher prices