June 23rd, 2008 10:42 EST
It`s Not Business as Usual
These are tough economic times. There are some people who are using the "R" word. There are other people who are using the "D" word. I don`t know if we`re in a recession or a depression, but what I do know is that many people are starting to have a hard time and that this economy is taking its toll on many people.
As business owners, marketers, and others who are trying to make successful entrepreneurial businesses happen, we have to pay attention and read the tea leaves -- especially when the tea leaves are clear. Whether we are in a recession or a depression is not for me to reveal, but one fact is clear.
It`s not business as usual.
The economy has changed. With the sea of change confronting us, we have to take steps that are different than those that worked during the robust period of the last five years. The housing market will no longer support the ATM cash withdrawal phenomenon that allowed so many people to live high on the hog. People will actually have to earn or generate the cash that they spend. Sad but true.
With people having less access to cash, cash once again is king.
It`s important to get into a strong cash position. Since cash is tight and we are in a more
difficult economy, the people who have cash are going to win the game. This is partly because those are the people who will have the staying power and the ability to make decisions with lightning speed. It`s also because these are the people who will have the ability to buy distressed assets that people who need cash now have to sell at bargain prices.
The people and the companies that have cash are the ones that are going to be able to take others out of their misery and bail them out of the bad deals that they`ve gotten into -- the ones that they can`t afford to support any longer. It means that they`ll be able to buy properties and businesses and jump into opportunities that just a few years ago were going at a tremendous premium.
Get ahead of the curve. A wise man that I had breakfast with today told me to be "revolutionary." This man has made an impact on all of our lives. I promise you that he knows what he is talking about.
Get lean and mean. Be smart. But most of all be ready. The down part of the cycle is the part that few people understand, but it`s the time that the most perceptive people make the most money.
So, as you are working hard every day to build your company, or as you`re building your career, pay attention to the world around you. As the world starts to change, adapt your behavior accordingly. Right now, that means cash. In other times, it might mean taking a different kind of strategy. But one way or the other, make sure that your strategy matches the environment and the economy in which we live.
About Joel G. Block, President of Growth-Logic, Inc.
Often dubbed a "Growth Architect" by his clients, Joel Block advises companies on explosive growth strategies by driving revenue and sales. Well known in the capital markets, Joel is a successful entrepreneur, speaker and advisor. To bring Joel into your company, please visit www.joelblock.com or www.growth-logic.com. Also, be sure to check out our newest project: a blog to organize the blogs that cover entrepreneurship - http://www.entrepreneur-hub.com. And finally, for film makers: http://www.filmfundingblog.com/ - our newest project.