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Friday, July 31, 2009

Optimism, followed by...

Today’s New York Times was among those outlets heralding the news that finally, it is not the economy that is slowing, but the recession! (Click here to read the story.)

Implications: I know I’m sick and tired of hearing about The Great Recession. I’m confident you’re tired of it, too. But as eager as we might be to put this recession behind us, remember that we’re likely to see ups, downs, and bumps on the road to recovery. (See, “Why some companies that survive the recession may not survive the recovery,” June, 2009.)

That’s why you should...

Celebrate the good economic news, when it comes. But keep it in context.

Realize the success of your company is built on the relationship you have with consumers. (Focus on the people who live on Elm Street, not the news coming out of Wall Street.)

Consider which competitors are taking a “wait and see” approach to business; their customers may be yours for the asking.

Reflect on what kind of challenges you might face during a turbulent recovery. Which goods might cost you more? What cost increases might you have to pass along to the consumer, if supplies fail to keep pace with demand?

Have you spent the past two or three years training customers to only buy from you when it’s cheap? Should you be talking about your broader value proposition right now?

Optimism is fun... but realism is more profitable. Reconcile everything you hear--good news and bad--with the realities and needs of your customers. In doing so, your recovery is likely to begin sooner than most.

Mike Anderson

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