A Business Coach's Perspective On The Economy

I’m not an economist, I’m a business coach

, but through my coaching I get a pretty good feel for what’s going on out there in the business world.  Today’s business owners have to deal with two kinds of change: 1) the things that have changed that will eventually return to the way they used to be before and 2) the change that is irreversible.

Business Coaching

Tip #1: A lot of hings have changed forever. Or at least for a long time.  When people call to discuss business coaching, they are often calling because they are concerned about how their business is doing.  Those who have been hit hard by the economy seem to have a common strategy:  Duck down until it’s safe to raise our heads again.  In other words, wait for this to blow over.  From a business coaching standpoint, this is not a strategy.  In fact, it’s denial.  There has been a fundamental shift and we all better understand what it is and how we are going to deal with it.

Business Coaching

Tip #2: There is a “new normal.” This means that we will not return to the old normal — the old way.  Too much has changed.  There are things that are specific to certain industries, like real estate.  But, there are some “new normal” changes that I think apply across the board.  Consider what has changed forever in your industry and the implications of that change.  For example, have your prices declined to a point that you believe you will never be able to charge what you did before?  How will you adjust to remain profitable?

Business Coaching

Tip #3: Undifferentiated businesses will not survive. In a growing market, businesses that did not sufficiently differentiate from the competition often could survive.  They just rode the growth of their industry.  Not any more.  If you are not different in meaningful ways from your competition, you won’t be around long.  If your customers are making their buying decisions on price alone, you are not differentiated.  What strategy will you use to differentiate your business from the competition?

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Tip #4: Make employee retention a priority. That may sound strange at a time that unemployment is so high.  But, the truth is, shown by countless surveys of employees, people are just laying low until things get better.  I saw a stat the other day that said 80% of employees plan to look for another job as soon as things turn around.  WOW!  So, don’t wait until your best employees start looking.  Begin today to do the things that make your company attractive.  Make your company a place employees will want to stay even when they have more choices.

Business Coaching

Tip #5: Take advantage of the downturn. Are there competitors you might be able to buy at a discount?  Are there good people on the street you would benefit from hiring?  Are customers looking for new suppliers because their old ones are out of business or shaky?  Consider how to take advantage of this tough economic time.

What I have noticed in my business coaching is that the clients who are able to appreciate these times for what they are seem to handle them the best.  Those who are in denial, or are resistant to the new reality of their industry, have a much harder time.  There are some things that will never be like they were before.  We need to understand what those things are and adjust to the “new normal.”  There are some things we do simply have to ride out.  And, there are things we can take advantage of.  What is true for your industry?

noconnor@mindspring.com

www.nanoconnor.com