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.
I believe that both of these factors should be willing to take most of the blame for the situation we all find ourselves in. The media are simply exacerbating matters with their constant negativity and messages of doom. It is enough to make the best of businessmen 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.
So enough about whats to blame for the crisis, whats the solution? Well, I do not believe that recession is entirely negative, opportunities can come of it if you carry on implementing the fourth M effectively, 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.
I believe that both of these factors should be willing to take most of the blame for the situation we all find ourselves in. The media are simply exacerbating matters with their constant negativity and messages of doom. It is enough to make the best of businessmen 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.
So enough about whats to blame for the crisis, whats the solution? Well, I do not believe that recession is entirely negative, opportunities can come of it if you carry on implementing the fourth M effectively, 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 specialising in smaller businesses. He can give you his professional advice based on over three decades of experience, during which time he has learnt exectly how to deal with a recession. Terry Forsey can guide your business to success through the hardest of times.
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