A New Outlook for a New Year; Preparing For Later Now

Happy New Year! It’s a new year and we all have much to consider as we complete our plans for the 2009 fiscal year. In many ways the things we do (or don’t do) at the beginning of the year will set the tone for the entire year.

This is complicated in 2009 by a tough economic environment. The weak economy means that we have less room to make mistakes and more challenges to overcome to achieve the same growth. As business owners, we can take two distinct approaches to preparing for a new year. The first is to be defensive and try to prevent the weak economy from draining our limited resources. The second approach is to try to grow our businesses despite weakness in the economy.

The first approach appears on the surface to be the safer choice. However, this is basically a position of surrender. As a business owner, if you choose to take this approach you will be conceding ground to the competition. This is a certainty and it will leave your business vulnerable when things start to turn around.

The second approach seems more aggressive but can allow your business to grow when others are giving ground. During challenging times there is an opportunity for healthy businesses to grab market share that would otherwise be unachievable. This might appear like standing still, but when things turnaround you’ll notice a difference. Smart companies will watch their expenses in 2009 for sure, but they will also seek out new opportunities.

Here are a few things to consider for the New Year:

Act like an entrepreneur – Even established companies can learn from younger companies. Start ups have a knack for doing more with less. Try to find creative ways to execute your strategy while keeping your expenses under control. You may have to alter your strategy or stage your product releases, but this will ultimately leave you with more cash to manage your business and see your employees through the troubled times ahead.

Look for ways that your business can thrive in a down economy – Even the weakest economic conditions will hold some economic activity. The motivation behind purchasing decisions will change during these times. So the challenge is one of positioning and thinking about how your business can deliver products and services that are in-line with the purchasing motivation of your customers. Can you offer services to help your clients operate more effectively?

Prepare for the economic recovery now– The reality is that if you are not prepared for the current economic realities then your mistakes all took place six months ago. Your current plans should be focused on positioning your company for the environment that will exist six months from now. By then, the housing market should have bottomed out. The credit market will loosen up as banks will need to lend money at some point in order to make money again (and all the weaker players will have been acquired or otherwise re-sized themselves). The new administration will have been in office for a while eliminating some uncertainty and people will be receiving their tax refund checks. Start thinking about the summer now and how you want your company to be positioned for your clients’ next budget cycle in the Fall.

This New Year can be a rewarding year. Find help where you need it. Pay attention to how you are spending your resources and keep an eye on growth even as you watch current revenues shrink. Just remember that what you do now at the beginning of the year will affect how you finish your 2009 fiscal year.

Good luck and Happy New Year!