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Recession = Opportunity

The current recession is bad news. Seriously. Real people are losing real jobs. Real companies are going out of business, excepting the ones “too big to fail”.

While I could rant for a whole series of blog posts about the bailouts right now, I’d much rather focus on the upside of recessions, this one in particular.

Let’s face it: recessions are a fact of life. Our financial culture dictates this. When the levers of commerce rely upon the ever-greater accumulation of things, there has to come a time when people, as a mass, decide to rein things back for a while; catch their breaths, and focus on paying down the debt instead of getting another big-screen TV.

Like the tides, it’s the ebb and flow of capital that tells us that things will get better again soon. Ultimately, a recession means “no growth”, and so we’re consigned to the fate of not growing our business for the next 12-18 months.

So, what does an enterprising business do when faced with stagnant market growth? Fortunately, most companies choose to turtle in these conditions: reduce the scale of operations, shut down any experimental programs and research, and basically sit unchanged until the markets come back. I say this is “fortunate” because their short-sightedness is your opportunity. While your competitors are huddled in their shells, you have a golden chance to bring out new initiatives, new products, and new processes that will outpace your rivals.

My favourite example comes from Apple. During the last recession in 2001, when most companies were sitting on their existing products, Apple was spending feverishly, building the infrastructure for their new music business, developing what ultimately became the iPhone, and investing in their operating system and hardware businesses. Apple came out of the recession a dominant player in the technology industry. They did it because they were smarter than the rest of the market.

A recession is a test. Be bold, or wither. Be smart, or fade away. The markets never sit still, but they’re less forgiving now. People still have to spend money, and if you’re not doing anything to give them a reason to spend it on you, then you’re not likely to fare well over the next year or two.

Every business requires some level of innovation, of creativity. When I think of my customers, every one of them has a creative angle on their industry, a way to draw customers to them instead of a competitor. Now, more than ever, you should be thinking of new ways to bring those customers in, and making them happen.

For example, right now I have two initiatives in the planning stages for the new year: one is to push my Website in a Day service to specific markets that are likely to respond to its low cost and ease of use. Another is the development of a backup service for writers. In both cases, I’m diversifying slightly from my core business. But with the right plan in place, and a little luck, I’ll not only survive the recession, but come out stronger than before.

There’s a popular meme out there nowadays: “We don’t choose to participate in this recession.” That’s blindness, arrogance. This recession is real, folks. But with a little judo, you can turn it to your advantage.