Written by: David Terry, Executive Director
We are in historic times in this country, with unemployment nearing double digits, a new administration, and fears associated with a recessionary economy. But, all this talk of recession lately has caused me to think more positively than most. Warren Buffet said, Be fearful when others are greedy, and greedy when others are fearful. I think it is time for value-added, innovative, laser-focused entrepreneurial companies to rise up, gain market share and lead us out of this recession.
Entrepreneurs, whose companies create more new jobs and create more new wealth, will be the ones to bring us out of this recession. More millionaires were made out of the Great Depression than ever before. Disney, Microsoft, Hewlett-Packard, Oracle and Cisco were all founded during downturns in the economy. Recessions have proven to be good times to start businesses because costs are low and consumers and businesses alike are looking for substitute products and services. In times like these, the market is purged and the playing field is leveled leaving room for entrepreneurial companies to not only survive but thrive and grow.
So, hear are just a few thoughts about aspects of entrepreneurial companies that need your attention.
Responsibility and Focus
First, this is not a time for the blame game. Accept that you are where you are because of decisions you have made. You are responsible, not the government or anyone else who can rescue you. Once you have determined that, then it is time to get focused.
What needs to change so that you can spend most of your time focused on money making activities? What are your goals? You will achieve what you focus on.
Managing Money
Second, in recession or not, cash is king. Companies that fail to hang onto cash often do not survive. Delaying payments to suppliers to stretch cash is not the answer, however. With low interest rates, this may be a good time to refinance. It may also be a good time to renegotiate your lease. Do not buy it unless you need it but do not let a sense of urgency force you to make rash cuts, especially in your marketing budget.
Marketing
Third, this is a great time to take advantage of your competitors excess timidity and take advantage of low-hanging fruit – opportunities for quick sales. It is also a good time to re-examine your customers to make sure they are profitable and dependable.
Manage your greatest asset – your people
Fourth, be accountable. Do not blame troubles on anything but your own decisions. Be visible and proactive in communication with your employees, your customers, and your suppliers.
Technology
Fifth, invest only in technology that offers current benefits, not just features that you may need some day. But, do not miss out on an innovation that could let you compete in the next boom.
As I was listening to a Dave Ramsey radio show recently, a story of a business owner in Tennessee intrigued me. Dave visited with a man whose business was booming in the midst of the recession. Dave asked the man his thoughts about the recession. In reply, the man said, Yeah, Dave. I hear the talk about the recession. I just choose not to participate.
While others may be fearful, entrepreneurs must be proactive in pursuing market opportunities. Maybe you need to hone your skills? Maybe you need a team to come alongside you? Maybe you simply need some encouragement to keep going? The WTAMU Enterprise Center is here to help you to not only survive, but to thrive and grow.
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