What a negative view the world has on business! Now all we see is “job cuts”, “unemployment”, doom and gloom. Businesses need an overall plan to PROSPER in down times rather than STRUGGLE. This may include temporary cutbacks but the publicity on that aspect alone is way overweighted.
It amazes me incessantly that all I see is doom and gloom. I see every day many opportunities that businesses are passing up to soften the blow of the "GFC" and they ignore them.
Upselling and host beneficiary programmes are perfect for these times to strengthen business positions but only a small percentage of businesses actually take them on as part of their sales and marketing armoury.
My clients are fighting against the pressure of the current times by strengthening their positions and avoiding layoffs and cuts. Sure, cuts may come but they will be part of a bigger more encompassing package and will have a positive thrust.
Success is a function of loyalty, leadership and teamwork. That is what I develop in the cultures of my clients. It is in fact easier to present a unique selling proposition or point of differentiation in tough times to grow market share for two reasons: Firstly, customers are looking at higher value offerings, so it is not hard to present them with one and secondly, most of your competitors are digesting the garbage that is promulgated by the irresponsible mass media and lose focus on the opportunities.
The media intentionally feed the downturn through their publications because that behaviour creates more news. There are thousands of businesses that are doing well. I come across some almost every day but do you see the media seeking those out? Not on your nelly, mates! Because if they create a positive environment that encourages consumption (very easy to do), they will curtail the "GFC" which is feeding them with the current array of sensational and disastrous headlines! The media can resolve the GFC faster and more effectively than any amount of government liquidity injections. But they won't for their own vested interests.
Cheers and keep looking at the growth opportunities!
Roger
www.harmonicbiz.com.au
Roger@HarmonicBiz.com.au
Hi Roger,
ReplyDeleteIf manufacturing and services folk can hang on, to continue to produce goods and services targeted at what people actually want to buy - they must win in the longer term.
Unfortunately the main winners so far seem to be the scumbags (the governments and the big banks). They are reported to have precipitated the problem, they seem to want to continue it, because they are charging the suckers high interest rates while central banks drop them so low.
The same will happen with the rubbish of carbon trading, just you watch - the winners will be the governments, big banks and credit traders. The suckers (you, me & Joe Public) will be slugged for every credit purchased and for every commission charged in carbon trading.
Hey Roger - why don't you make this comment box wider - the same width as you text. I am surprised at the programmers lack of vision. Courier font is dumb, the tiny area of this comment box makes it less attractive to potential commenters.
Regards, Barry from Rural Rouse Hill
Thanks Barry for your comments.
ReplyDeleteIt is clear that the banks will excel in their businesses at the expense of everyone else and it makes no difference what happens in the economy, it is the small guys who get slugged to pay BIG dividends and BIG bonuses to bank execs. The banks in the end really DON'T take any equitable share of the pain. They behave, as do the oil companies as an effective and borderline legal (although that is debatable)cartel. I am surprised that the might of the US anti trust laws doesn't swing a mighty sabre into the banking executives. Or maybe I shouldn't be surprised ....
Governments on the other hand are too scatty in their thinking and often stupid to actually foster any real outcomes. I see them as being in a position to run around with big buckets, catching the financial runoff no matter where it falls.
Keep rocking the world. Thank goodness for the 'net.
By the way, I have set it up to publish more neatly than the collection field window, mate.
Cheers
Roger
I agree with your comments. It seems to me from a purely lay point of view that the thing to do is NOT shut up shop, but keep the economy going as best we can by continuing to purchase and invest as far as we are able. If we could see some good news in the paper, it might inspire more confidence in the general public, but as you say, is that really what the media want? An organisation I am connected with has just announced record sales and growth for 2008 - is that in the papers? Keep up the good work, and spread the word! Kiwimadmum
ReplyDeleteThanks, Kiwimadmum
ReplyDeleteAppreciate the feedback and support.
Keep smiling and making money.
Cheers
Roger
Roger,
ReplyDeleteNo one voluntarily perpetuates the GFC.
Banks globally that have lost much of their capital have to raise more and this takes time.
Consumers are worried about losing their jobs and cut back their spending which makes things worse.
Companies that are affected by the slowdown in spending start to make losses and then either reduce staff, need to raise additional capital or both.
There is uncertainty in the banking system about who will be able to repay them and so they start to be more careful about who they will lend to.
Falling confidence merely builds on itself and aggregate demand continues to fall. This is what governments around the world are trying to redress by creating demand. In USA their stimulus package has just been passed in the Senate.
In Australia we are close to having our two part package passed. The first part is the handouts which are designed to generate immediate demand and the second part is the (school) construction projects which will take longer to get going but will create assets rather than just result in consumption.
Unfortunately, our package has to be approved by Rag Tag and Bobtail in the Senate who either cannot understand it or want to widen it to satisfy a more social or green agenda.
We will start to make progress when our package is passed.
There is, however, another problem. The US home loan market has not yet hit bottom. Building on continuing falling employment and its effect on prime mortgages we have their Alt-A loans (the equivalent of out low doc loans) where defaults are starting to increase and, as a result of securitisation, we will again have the problem of where the losses will eventually end up. This is what has caused the paralysis in in the institutional lending market.
We have a number of people forecasting that Australia will avoid recession which we might on a technical basis but we are closely integrated into the world economy as a result of globalisation and we still have a long period in front of us before the US housing bubble and growing unemployment reverse direction, global imbalances work themselves out and confidence returns.
Batten down for an extended recession
Hi Mate
ReplyDeleteThe media do not seek good news regarding the GFC. They overblow the headlines - "Mining in Meltdown" - that was after BHP pulled back on coking coal and closed the Ravensthorpe nickel mine (which was a doubtful investment even during the boom times). Steaming coal is rocking on although at about a 25% price drop and the growth in coal seam gas exploration is busier than ever.
Do you see a headline "Thousands of New Jobs in Gas Industry"? No. Do you hear of the thousands of small businesses that are doing well in spite of the economic situation? No. Ridiculous unemployment forecast statistics are thrown around irresponsibly by the media. These cause people to stop spending and pay down their mortgages. This hits small businesses and causes them to close the doors, thereby creating a self fulfilling prophesy.
I believe that it is done in the self interest of the bad news media with NO regard for community good.
Cheers
Roger