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What a crazy, uncertain time we live in.

I realize that just about any generation could say that, but you’ve gotta admit, things are pretty nuts right now and without getting even the least bit political here, we’re venturing into some uncharted waters this election year. Uncertainty always plays havoc with the stock market and the economy in general, so don’t be surprised if we have some rough waters in the near future. Possibly globally, from what I’m hearing. 

My source on this is “they,” by the way. As in, “They say…” 

Seriously, though…

A downturn usually results in downsizing. That is never something any decent leadership team looks forward to doing, though,granted, it is sometimes a necessity.

If you find yourself using the term “downsize” as part of your strategic vocabulary in the next few months, just keep a couple of things in mind. 

First, though downsizing looks good on paper, downsizing often results in a workforce with very low morale which  in turn results in a workforce that delivers lousy customer service. The net result of that can be lost revenues.

Second, don’t forget that what you are after with your ideal customers is a lifelong relationship. So if lousy customer service results in the loss of a customer, you’re also potentially losing a whole lot more in terms of the lifetime value of that customer. 

Hasty downsizing can be like cutting off your arm to cure a hangnail. Its “savings,” may not always save you what you think they will. 

In the words of Tom Peters, you can’t shrink your way to greatness! 

 

Comments Off on Downsizing often costs more than it saves (way more!)

Do I think we’re headed for an economic downturn?

Yes. Absolutely. Definitely.

Why do I say that?

And for that matter, why would I say such a thing when it’s usually my goal to offer you mostly positive stuff when you visit here?

I say yes, we absolutely, definitely are headed for an economic downturn. And it could be rough.

I say that with such confidence because that’s what economies do. They go through periods of prosperity, recession, depression, and recovery. 

You can take that to the bank, friends. 

When can we expect the next downturn? How bad will it be? How long will it last? 

Beats me. Knowing how economies work and what to expect is one thing. Knowing all the particulars and specifics is something else. And I’ll also say, I’ve read the works of many authors and trend spotters over the years to it’s pretty clear that nobody knows nothin’ for sure when it comes to timing predictions in the economy. 

You may not be able to time predictions exactly, but knowing that what goes up also comes down can help you make better decisions in terms of planning ahead. Store up a little something for the winter, in other words.

That way, you don’t have to worry so much about the economy, you can focus on your economy.

Our old friend SWOT the PEST may be of use to you in that regard. 

It’s a recession when your neighbor loses his job; it’s a depression when you lose yours.” – Harry S. Truman

Comments Off on Is an economic downturn right around the corner?

We enjoy so much abundant choice when it comes to all the affordable things that are so readily available to us in the free market. I often find myself feeling a bit guilty because all that abundant choice is indeed so affordably, readily available that I forget that it happens because at some point, an entrepreneur had the guts to take a risk and put in all the hard work into giving me the value I take for granted.

How about we all make a point of at least acknowledging, if not outright, deliberately thanking, the entrepreneurs for doing what they do?

And if you’re an entrepreneur reading this, thanks! 

The risk of losing their house, prized possessions, and life savings is a risk that many backyard inventors are ready to take in order to launch a fledgling enterprise. These people with grit and gumption, willing to wander into uncharted territory just like the pioneers of old. In starting a new business, they choose excitement over the security of a regular paycheck. It’s not enough that they invest all their money in the project. They must also work long hours and invest most of their time.” – Peter Lynch, Learn to Earn