Every small business owner in the world will know that the current recession is one of the most dire that the world has ever seen. In fact, the last time there was a recession this bad, world war two was what got us out of it, and I'm pretty sure no-one is hoping for another one of them!
That I can see, there have been three main causes for this downturn in the economy, and one solution to get things back on track again. This is known as the four "M"s theory.
The first factor in the cause of the recession, I believe was Mervyn King. He does not seem to have any sense of how much impact his statements have and the mayhem they cause. Quite closely related to this, I believe that the second "M" to blame for the coutnry's (and the world's) situation is the media.
These first two "M"s should be prepared to take the main bulk of the blame. All the media have done is make things far worse than they ever needed to be by inflicting their negative press upon all of us day in and day out, causing a completely unnecessary panic
"M" number three to blame for the recession is the lack of MONEY from the banks. They got lazy during the years of economic boom and wound up alienating themselves from clients. In an attempt to aid the smaller businesses, the government offered their financial support to the banks. But as the banks are businesses as well, just like any other business they wanted to avoid risk and look after themselves. The government should forget about the banks if they really want to help out the smaller businesses.
While the governments scheme to pay invoices in 20 days is commendable, theyve apparently forgotten that most small businesses are subcontractors, while the main contracts will always be with the big contractors. The higher levels of payment enjoyed by these primary contractors have not been passed down to the small businesses.
Enough talk of who and what is to blame for this situation, what can small businesses do to stay afloat in these difficult times? Well, as I believe that there are opportunities to be had from recession and that it's not all bad, the fourth "M" is marketing.
In the times of economy growth we all, like the banks, become lazy as customers fall through the door of their own accord, now we suddenly have to work much harder. Businesses MUST continue to market themselves during these times, and the ones that do (judging by the recession of 91) will be the ones that on top of the competition for years afterwards.
That I can see, there have been three main causes for this downturn in the economy, and one solution to get things back on track again. This is known as the four "M"s theory.
The first factor in the cause of the recession, I believe was Mervyn King. He does not seem to have any sense of how much impact his statements have and the mayhem they cause. Quite closely related to this, I believe that the second "M" to blame for the coutnry's (and the world's) situation is the media.
These first two "M"s should be prepared to take the main bulk of the blame. All the media have done is make things far worse than they ever needed to be by inflicting their negative press upon all of us day in and day out, causing a completely unnecessary panic
"M" number three to blame for the recession is the lack of MONEY from the banks. They got lazy during the years of economic boom and wound up alienating themselves from clients. In an attempt to aid the smaller businesses, the government offered their financial support to the banks. But as the banks are businesses as well, just like any other business they wanted to avoid risk and look after themselves. The government should forget about the banks if they really want to help out the smaller businesses.
While the governments scheme to pay invoices in 20 days is commendable, theyve apparently forgotten that most small businesses are subcontractors, while the main contracts will always be with the big contractors. The higher levels of payment enjoyed by these primary contractors have not been passed down to the small businesses.
Enough talk of who and what is to blame for this situation, what can small businesses do to stay afloat in these difficult times? Well, as I believe that there are opportunities to be had from recession and that it's not all bad, the fourth "M" is marketing.
In the times of economy growth we all, like the banks, become lazy as customers fall through the door of their own accord, now we suddenly have to work much harder. Businesses MUST continue to market themselves during these times, and the ones that do (judging by the recession of 91) will be the ones that on top of the competition for years afterwards.
About the Author:
Terry Forsey is a sales and marketing coach for smaller businesses. He can give you his expert opinions based on over 30 years experience, during which time he has learnt exectly how to deal with recession. Terry Forsey can guide your business to success through the hardest of times.
