You know, the Japanese think differently than Americans do in how they view business in most cases, they think long term. They think in terms of cycles, there will be up cycles and there will be down cycles, one after the other like clockwork. And because of this viewpoint in most cases they have a better approach to handling crises. What is this approach?
When times are very good, they don’t go overboard and over spend what they are earning, they spend to PREPARE for the next downturn. They’re conservative in spending. They don’t over hire because of the growing economy, they don’t create new and bloated system, processes, and personnel and new spending with the intent of following America’s constant boom and bust cycles. Or as Warren Buffet states, you don’t follow the crowd, you do what the crowd is NOT doing and you’ll make it. You spend only enough to improve your competitive position during the next downturn cycle because just like now, everyone is “selling” or getting out of things that are not critical to their business.
While this recession will force our economy and companies to get back to the “critical few” and drop the “trivial many,” much like a heart attach telling you need to eat healthy and exercise, it remains to be seen if Americans will take heed to time honored advice and spend only what is necessary during times of plenty, or will we be duped once again but the drunkenness of easy profits and money.
So, think long term, what do you intend to do AFTER this recession? Knowing what you are to do when things are good will better prepare you for something like today.
We’ll get through this for sure, but we need to learn lessons of the past so that we don’t put ourselves in a pinch again.
We can’t spend out way into prosperity, someone will have to pay for this trouble we’ve gotten ourselves into.
Do you need help in saving time and money in your small business processes, let me know.