I hope this blog finds you having had a great festive break and ready for the challenges of 2012.
For my first blog of the year I thought I would do something different and introduce a guest blogger – Jim Henderson from Shirlaws Coaching.
Jim has been a great support to me this year so i thought it would be good to ask him to share Shirlaws’ latest thoughts on the recession and its potential recovery.
I hope you enjoy & until next time,
Simon can be contacted on 0141 290 0262 or follow him on twitter @simonmurrison
Will it Ever End ?
Four years on, people are still feeling the massive fallout from the recession that began in 2007. It seems they are just about out of energy these days and our clients tell us there are fewer deals around.
Because businesses are pessimistic about the immediate future, they are cautiously hanging on to their cash and this approach seems logical. After all, some analysts have been predicting a recession end-point of June 2016. When they hear this, few businesses will be investing money unless a really good opportunity comes along.
It’s the holding back of cash because “we don’t know when this is going to end” which will causes the 2nd dip.
Start of the recovery
However, things are looking up. The economic clock suggests we are currently at 8pm, described as a hesitant, uneven recovery. Judging by people’s business behaviour, most are focusing on the word hesitant.
means the market is swinging up and down because confidence is lacking. The economy is still fragile and the last few months have emphasised this fragility re the uncertainty in the EU, with the markets varying up and down almost daily.
is the third word in the economic clock description and although it’s hesitant and uneven, it’s still recovery. Corporates have recently been spending money while the media are full of mixed messages – good pockets in some parts of the economy, while in other parts things still look grim…..hesitant, uneven, recovery.
Prepare for the Next Boom
The world is currently in a flat mode and is likely to panic at the next market dip. The business owner who’s educated, confident and secure about the economic cycle will be preparing their business for the next boom. It’s this preparation over the next 12-18 months that’s business critical in maximising the benefits including getting a head start on competitiors.
• Get your capacity numbers right to optimise profit – prepare and plan
• Get your timing right – match your business stage to economic phase
• Get your culture right and reconnect back to your vision
• Identify IP then package and distribute into niche markets
Jim Henderson – Shirlaws Business Coach 07817 745958