Seeing things in black and white?

Have you noticed how, after recent snowfalls, everything appeared to be in black and white? Maybe the sudden, chilly change in the weather helped us see the world in a more straightforward way. But as the snow gives way to rain, cloud and maybe some sunshine, the contrast again becomes less obvious. Life, like running a business, returns to normal…

The recession is real and each day brings further confirmation that businesses have a fight on their hands to survive. Many won’t make it.

The sharp, sudden economic downturn forces the backs of entrepreneurs and managers against the wall. The problems, and what needs to be done, suddenly become more obvious. Just like seeing things in black and white:

- Cash must be conserved. So costs need to be cut.
- Unnecessary activities can be curtailed.
- Redundant assets can be sold.
- Negotiations with suppliers can focus on getting the best possible value in return for continued (and possibly greater) custom.
- Business processes can be simplified; some can be outsourced.
- Complexity is bad; simplicity is good
- People who add little or no value to the business are dismissed
- Key business data is scrutinised, options assessed and decisions taken - quickly
- Sunday evenings are spent looking at cash flows, pushing forward key business development projects, rather than relaxing in front of Dancing on Ice

I’ve found myself doing all of these things in the last few months, and particularly since Christmas. And my discussions with other business owners yields a similar story.

One such businessman, based in Huddersfield, expressed it in a different way.

He told me on Sunday that he was pleased the economy was moving into a deep recession. It would force him to run his business better, to focus on what mattered and that his business would emerge stronger (though perhaps a little smaller) when the economic recovery begins.

I’m pretty sure he’s right, whatever the pain that we have to ensure over the next couple of years.