Simply Business Coaching

New Economy - What's that all about?

I don't recall which pundit first talked about our 'New Economy' but those two words have been warmly embraced and are now uttered more and more often.

Personally, I don't understand what's really new about it - unless it's simply an attempt to distance ourselves from the 'old' economy which got broken.

The term 'New' (along with its close cousin 'Improved') has been used by advertisers to persuade us to buy, almost since the beginning of time.  And after we have bought, all too often we're left wondering what's different from the original item that this 'new' version has replaced.

When we welcome in a New Year, it could be partly because we don't have any choice in the matter; January 1st is going to arrive whether we like it or not.  Perhaps what we really welcome is the possibility that the new year will be better than the previous 12 months - and it's a good excuse for a party!

Talking about a new economy certainly sounds rather brave and hopeful doesn't it?  Especially after living for so long with the dreaded 'r' word.

Here are some of my thoughts about the changes I believe small businesses need to make so that a new economy will work for them:

Don't wait until it's too late

With the very sad news of Michael Jackson’s sudden death last week came the predictable, and understandable, outpourings of grief; testaments to his musical genius; sharing of personal memories and the lament of opportunities now lost forever.

MJ’s music has been playing almost non-stop, reminding us of the astonishing scale and diversity of his talent and musical output. 

His greatest hits album ’Number Ones’ rocketed from 121 to the top of the UK album chart after a surge in sales since Thursday.   The same album was his last number one when first released in 2003 and some of his other albums have raced up the charts too.   Read the full story here.

While I sincerely hope that MJ’s children benefit from the play royalties and proceeds of all those sales, isn’t it a shame that they come now it is too late to lift the worry of financial ruin from their father's shoulders?

I nearly didn’t write this blog post because I dislike the idea of jumping on such a distastefully morbid bandwagon. The reason I’m writing this now is because, with the sad story still prominent, my reflections will hopefully make more sense than if I wait until later.  Which is also the point of this post.

Sudden losses can mean guilt for those left behind if they didn’t tell a deeply loved relative or friend just how much they are loved and appreciated, while they still had the chance to do so. 
Who are you going tell how much you love & appreciate them, today?

We often believe we have all the time in the world to fulfil our ambitions and dreams, when the reality is very different.
What dreams are you going to start making real, today?

Waiting until the time is right before embarking on a new project usually means it doesn’t get started.
What’s the first step of your new project that you’re going to take, today?

It can take life-changing events to force us to evaluate what we’ve achieved so far, and how satisfied we are with the results.
What changes do you need to make, beginning right now?

Whatever you've been putting off, please do it now.  Don’t wait until it’s too late.

Will things ever be the same again?

When I’ve been out networking and chatting with fellow business owners, it’s interesting to hear what they believe the next 12 months will mean for small businesses.  The general consensus is that things are tough and, in the b2b market, businesses are spending less and are being especially cautious about what they do spend money on.

Some business owners seem to have gone into what can best be described as hibernation!  They’ve cut back on all unnecessary expenses and are waiting for the economy to come out of recession.  They’re assuming that things will then go back to how they were before.

But that isn’t going to happen.  We can never go back, even by one day.  The scientists are still working on a time travel machine!

The financial and economic events of the last few months mean that business owners have to do things differently now, and will have to continue doing things differently in future, if they are to survive.

There is some good news though.  Right now is a fantastic opportunity for business owners prepared to take action in a few key areas and

•    Keep a close eye on cashflow.  Regular (daily or weekly) checks will ensure no nasty surprises lying in wait.  Think about putting in place penalties for late payers and bonuses for early payment.
•    Streamline systems & procedures.  Is the way things are being done the most efficient and cost effective? 
•    Make better use of marketing budgets.  There are many ways of making those budgets stretch further, especially by using the internet and social media effectively.
•    Invest in skills & personal development training.  Stay up to date with the latest technology and thinking.  Just one new idea may bring many benefits.

We need to be ready to do business in the world as it will be tomorrow, not as it was yesterday – because things will never be the same again!

Thank goodness for Swine Flu!

Please, don’t get me wrong – I realise there is the potential for a real health problem and am truly sorry for anyone who is affected by this illness.

The reason I say thank goodness, is I’m so glad the media have at last got a different headline to focus on.  I know they do so love to dwell on all the gory details – but, for the first time in ages, the doom and gloom about the economy has been relegated to second place. 

Over the last few months I have deliberately avoided watching the news bulletins as much as possible (difficult when you’re a news junkie!).  On the occasions when I’ve caught them, even the newsreaders were looking fed up at having to tell the same story over and over again.

Who would have thought that such a serious health scare story could seem like a breath of fresh air?

Worry is like a rocking chair .....

I couldn't find the original author of this saying, but it’s so true:

“Worry is like a rocking chair, it doesn’t get you anywhere but it gives you something to do.”

If you are so worried about how you’re going to pay the bills, you will probably not be making your best decisions, and you’ll certainly struggle to concentrate or work on anything creative.  I know this because I’ve been there.

When you have your own business there can be some very hairy financial moments.  Worrying about the credit crunch and its possible effects is likely to bring you at least a few grey hairs, and at worst a stress-related illness.

I’m not going to tell you not to worry, that would be foolish of me.  And I honestly don’t know how long or how deep the current economic depression is going to be.  I do believe however, that the media are making things worse because of the number of times they keep repeating how bad things are!  I’ve blogged before that I’ve stopped buying a daily paper as I find it too depressing to read.  But even so I can’t escape all the bad news broadcasts.

In case you haven’t heard, I’m starting a new radio show on the internet (also known as a podcast) on Monday 12 January.  Each Monday, at 5.30pm (GMT) I’m going to be chatting with a fellow business owner about what they do, the challenges they’ve faced and some of their top tips.  I’ll also be asking them for their personal take on the current economic climate.

If you’re a one-person business, please don’t feel you have to worry on your own.  Listen in to the weekly shows on BlogTalkRadio, (it’s completely free and details about how to join in are on the website) or to the recording which will be posted here on the blog, when I’ll be sharing messages of encouragement and motivation!  And if you’ve got a particular topic you’d like to find out about, just leave a comment here and I’ll do my best to find out about it for you.

Who really knows what lies ahead?

 It’s interesting that so many experts are telling us what we need to be doing in our businesses to weather the current economic storm.  Interesting because ‘they’ don’t know what lies ahead, any more than we do!  No-one knows how long this situation will last or what will happen when we come out the other side.

As I write this article, Woolworth and MFI are dominating the gloomy UK business news as they slide, whimpering quietly, into administration.

And then I saw this on Richard Branson’s Blog:

“The best, most solid way out of a crisis in a changing market is through experiment and adaptation. Businesses surf the waves of changing circumstances, and I can’t offhand think of any industries whose best players are not constantly engaged in reinvention of one sort or another.

Making changes and improvements is a natural part of business, and for sole traders and very small companies, the distinction between innovation and day-to-day delivery is barely noticeable and unimportant. It’s all just business, and creative, responsive, flexible business comes easier to you the smaller your operation.”

(I know he’s got a new book to promote, but he’s also managed to start and sell some very successful businesses, as well as surviving previous economic downturns.  All this makes him a credible source of advice in my opinion!)

While this advice may not be brand new, it does at least make sense and is encouraging for small business owners.  What changes and improvements are you going to make?

The Ambulance Chasers are back

I believe the term ‘Ambulance Chasers’ originated when unscrupulous lawyers used to literally follow ambulances to their hospital destination.  Once there, they would accost the unfortunate patient and offer to represent them if they wanted to sue whoever or whatever caused the injuries! 

Well, it appears that the Ambulance Chasers are back!  Not lawyers this time (as far as I know), but all kinds of businesses who are trying to make money from people’s fear and uncertainty about the economy and what it means for them and their families.

For private individuals the phone keeps ringing with automated messages telling you that your debts can be completely wiped out – if you just speak to one of their advisors.

Emails and letters promoting events and products promising to show you how to ‘recession proof your business’ are another good wheeze.

I’m not an economist, nor am I a financial expert.  All I know about the current situation is what I hear & read in the media – and there’s far too much doom & gloom reporting in my opinion (as I’ve said before!).

But what I do know is that if all the so-called experts in the world haven’t been able to avoid what’s happening, then there’s no way that these events, products and programs can be guaranteed to work.

There’s a big difference between seizing a genuine business opportunity and exploitation.  In my opinion this latest group of Ambulance Chasers have crossed the line and should be ashamed of themselves.

On a positive note, it’s heartening to see so many fellow Bloggers and Tweeples banding together to offer advice and support to each other in this difficult time. 

We've been here before

With everything that's happening in the financial world right now, many of the small business owners I speak with tell me they're nervous about the future of their business.  They're thinking twice about spending money and some are cutting back on marketing.

Yesterday morning, I gave a talk to a local group of ladies who were either in business or about to start up.  One of the other speakers told us that she first started in business in 1992, literally just before 'Black Monday'.  Happily her business weathered that storm and today she is very successful.

We tend to forget that we've been here before and survived even worse economic situations.

When you go out networking amongst optimistic people, you find a very different story to the one being thrust at us morning, noon and night by the media.  As I've mentioned before, I stopped buying a daily paper months ago because the bad news was distracting me from getting on!

While I don't deny that there are some financial challenges right now, just about everyone I spoke to at yesterday's event was enthusiastic - and had decided to continue building their business regardless of the economy.

Now, more than ever, we need to keep marketing, continue networking and getting our message across.