As soon as the Government officially announce we’re in the grip of a recession, most companies start to panic and undergo a cost cutting exercise. Whilst this is not necessarily a bad decision, it does suggest a lack of cost control previously. Successful businesses understand the need to keep a tight rein on costs on an ongoing basis and always know that their overheads are under control.
However there are some “golden” companies who clearly see opportunities in a global recession. They see the potential for growth by investing in their future at a time when other businesses are shrinking. During these tough times they budget for better resources, introduce improved products and services and see the possibilities in how best to solve problems innovatively.
For every Mothercare or HMV that shrinks during a recession, there are always companies such as Apple that drive their businesses boldly forward where few others dare to go.
If innovation and marketing is the key then why do companies fail? Could it be the CEO does not believe in the ability of their own company to succeed? Does running a business in this economic climate require traits of bravery and determination?
There will always be ‘tough times’ for any business and inevitably some businesses will fail for a multitude of reasons. However a combination of diligence, determination and yes, perhaps even bravery will drive your business forward through a recession. Time doesn’t stand still though – stay alert to what your competitors are doing in order that you can be one step ahead and win the race.
May I ask Team UK: What are your competitors doing right now that is driving their success?