Many are calling the present economic situation a “recession” or an “economic downturn.” While the present reality is indeed both of those, many are seeing it as a more permanent “economic realignment,” or “economic adjustment.”
Let’s call it like it will be: a New Economy. What does that mean?
From individuals, to local, state and federal governments, to multi-national corporations; from America to the rest of the world – one thing is clear: spending habits and priorities are shifting. Individuals will be spending less on non-necessities. Families will be buying smaller homes and fewer consumer items. Government entities will collect less taxes and be forced to spend less on public services. Businesses will have to cut back spending on workforces and employee benefits.
For those in small business who do not understand this or choose to resist it, the future may look bleak. But those who see an opportunity will be able to serve the needs of their customers while profiting handsomely. A classic application of the “win/win” philosophy.
Small businesses will be able to profit more quickly from the New Economy than large corporations. Why? Several reasons:
- * Small business leaders are more able to quickly adapt, quickly shifting strategy to adjust to the effects of the recession
- * Because we are small, we can more easily re-configure and/or re-brand to appeal to New Economy spending habits
- * Some entrepreneurs will be able to see new opportunities – like Mike Jay, a fellow business coach, who sees a lot of opportunity in “austerity coaching.”
However you might slice it, the New Economy created by the present recession, depression, economic downturn, or whatever you wish to call it – will be an opportunity for wise entrepreneurs and small business owners. Seize the day!