Recession Mindset – Operate Lean and Mean!

Champion Assistants Business NegotiationBusinesses that start during times of recession or uncertainty tend to thrive, and a key reason why is they learn from the beginning how to operate lean.  Business that start during boom times get used to steady cash flow, access to venture capital, and a hungry customer base.  When economies start scaling back and consumers become choosier about how they spend their money, businesses that haven’t been careful about their internal cash flow and checks and balances can really get hit hard.  Reality can be harsh!

I would argue that the best way to run a business is as though there was a constant recession.  It’s always important to value every dollar whether earned or spent and never take customers for granted.  In boom times it’s easy to get caught up in the fever of success or the free flow of cash exchange.  By operating in recession mode, businesses can be more careful about how earnings are invested, or reinvested in the company, and extraneous purchases can be avoided.

Too many times excessive investment is made in technologies or services because they will some day become useful.  There is an attitude of preparing for the future even if the path to get there hasn’t been strategically thought out.  A recession mindset would help guide decision makers to create sound and realistic strategies for future business, instead of counting on continuous prosperity.

My argument is that businesses should utilize every resource they currently have and only upgrade when absolutely necessary.  That applies to technologies and services, because I have never seen an instance of scarcity.  Businesses also need to focus more on free resources – that is their current contact network. Are they optimizing sales with existing clients?  Are they treating prospects with white gloves?  Are they letting their network know their unique selling proposition?  Are they getting other people to do the selling for them through affiliate programs?

It’s important that companies operate lean by utilizing existing resources and resist consumer temptation to upgrade, purchase for optimistic future plans and buy anything that does not fit in with their core operating values.  With a lean and mean mindset, even the smallest businesses can tough out a recession!

To your success,

Heather

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