Don’t mention the ‘R’ word

How is your business going to cope with the current economic recession?

If you like to read the paper, or perhaps plump down in front of the telly at 6 o’clock after a hard day, then you’ve almost certainly been bombarded with talk of the recession recently. It’s difficult for even the most staunch business person to maintain a thick-skinned immunity to it all. I find encouragement in talking to business owners who are striving and thriving through it all.Here are a few tips from me that might help put it in perspective.

It’s nothing new
Remember the Asian Economic Crisis of 1997 which prompted fears of a worldwide economic meltdown? What about the Y2k computer bug that was going to cut off life support to our cities, throwing hospitals and public service into disarray? Most people have only vague recollection of these events. They came, they went and we all moved on. That’s not to say they didn’t have their impact. However, their overall impact was short-lived and we moved on, leaving the media in search of a new crisis.

Retreat? Already?
I’ve spoken to business owners who have laid off staff “in preparation” for the recession. Sure, you should always review your efficiency and sometimes the business needs streamlining. However, the moment you reduce your level of service, or let internal processes lapse, you’re on a slippery slope. Quiet times are a great time to train staff. This will put you in a better position to capitalise on the recovery – it’ll be here sooner than you think.

Services, not commodities
I know I’m speaking to the converted, because pharmacies are great at delivering service. When someone comes in with a headache, they are not looking for a commodity (headache pills), they are really looking for a service (remove my headache). Understanding the distinction, and training staff accordingly creates the difference between those that survive and those that succeed. Note the subtle difference…

Systemise… Everything
If it can be automated, automate it. If it can be systemised, systemise it. If you have to scale down your business at any stage, you will thank yourself for the work you do now. If you grow, then the systems you create now will accelerate your growth exponentially. The most prepared businesses will be the ones that grow the fastest following the recession.

Recommended reading: The E-Myth (Michael Gerber)

Finally, be optimistic, even if it is just for the sake of others. Economies are really just the collective state of mind – they are driven by the mood of nations. Every individual mindset is a tiny piece of that puzzle. Share your enthusiasm with your staff, suppliers and associates. Buoying them with optimism reduces their stress and helps them be more productive.

Peter Thomas, Chief Executive, Nexus Data Limited