Recession – Sink or Swim

The word recession produces different reactions in different people. There is no doubt that times are hard and they're about to get harder, but is it the end of the World? Is it the end of your business? For some it is. I put it to you that there are four categories business operators fall into at this time.

1) The Over-extended
For these folk their business was already walking the thin line between operation and insolvency and any downturn in income would have tipped them over the edge. A recession is truly insurmountable for them. By now these businesses have probably already failed.

2) The Oblivious
These people have businesses which could, with a little effort, survive or even prosper in a recession. The problem is that the people running these businesses have not planned or prepared for a recession. They think that by not acknowledging the economic downturn it will just go away. These businesses will probably fail in the coming months. If they do manage to survive they will come out the other end much worse off.

3) The Overly Cautious
We've all worked for or dealt with one of these companies. These are the ones who, at the first mention of economic hardship, pucker up so tight that not a single cent gets spent. These are the companies laying off workers, slowing production, stopping advertising, canceling orders and, in all ways possible, feeding the recession.
Sadly they do this because they know it means they will survive the recession. They will worry later about the hits they've taken in the process – lost market share, lost suppliers, lost skilled employees and lost brand confidence.

4) The Opportunistic
These people don't see recession, they see opportunity. These people find a way to not only survive the recession, but to come out on top. They find a way to pick up the business lost by other companies; they take advantage of cheap advertising rates to build their brand; they forge new corporate relationships with like-minded companies and together they move forward. They know that any weakness of others can be a strength of theirs. They know that it is easier to implement a new idea now than ever.

This is a sink or swim moment for businesses. New businesses are at an advantage, not having the investment of established companies.
The Internet holds great potential for new and expanding businesses to cheaply build their brand, their customer and supplier base and to establish themselves as leaders in their fields.

Take advantage of great opportunities.