We are now one year removed from the peak of the worst credit crisis the world has experienced in generations, resulting in the longest and deepest recession in the post-World War II period. The magnitude of this decline was worse than many people have ever experienced.
Since then, however, we've had one of history's greatest rallies! Currently, we're about halfway back to where we were when it all started to unwind.
Are We Headed for a Double-Dip?
Good things are starting to happen. It took a year, but growth has returned. In the past few months we have seen almost universal signs of growth, with a rise in manufacturing output, retail sales, home sales, business spending, and even IPOs and merger-and-acquisition activity.
The big question is: Will we go through a big double-dip as we come out of this crisis?
There are a number of reasons why such a scenario is likely. One is that there probably will be a second wave of housing problems as a different group of people with adjusted rate mortgages encounter another reset date and default. A second is that there is just no way for the market to heal this quickly without experiencing some degree of setback.
I haven't the slightest idea whether we're going to have a double-dip on the way out of this recession or not. No responsible business coach that I know, me included, is about to predict what will happen next. However, there are some things you can do now to favor an optimistic outcome, regardless of a double-dip.
Three Small Business Best Practices for 2010
1. Hire a business coach.
For many years, clients have pointed out the following advantages of working one-on-one with a small business coach when starting up or growing their businesses:
Accessibility - Knowing that you have a real, live person that you can call and discuss your personal business situation with is priceless.
Personalization – If you're currently working with a small business coach, then you know the benefit of being able to work with somebody who knows your business situation. An experienced business coach provides customized business management and ongoing strategic oversight that can better position you to reach your long-term goals and objectives.
Skills - A skilled business coach has the training and insights to understand your goals, your dreams, and your reasons for starting up and growing a business. They can help you create a start-up strategy that meets your short- and long-term needs. Business coaches don't merely help you start up your business. They carefully analyze your personal circumstances and assess the market environment as they work with you to develop your small business startup and growth plan.
2. Focus near-term.
The past is behind you. Turn your mind toward 2010 and the work that needs to be done for your business success today.
Now, at the start of 2010, it's important to concentrate on the most important things that need to be done first to move your business forward. Do not make the mistake of thinking that you first need to get caught up in revisiting or analyzing the past before advancing toward the future.
Expect to get caught up on everything this year while doing the most important things right now for your 2010 success.
3. Reinvent your business.
2010 will be the year when you will have to reinvent yourself and your business. The world is not the same world you inhabited just a few years ago. Don't get caught up in thinking that, once the economy settles, we'll all be returning to the way things were. There is no going backward. And, honestly, even if you could, would you?
To respond to events, do something new and innovative. Something other people would not expect you to do. The old way of doing things doesn't apply any more. So be brave and try something new in your life and business.
While the next 12 months will bring new challenges, look forward to more signs of recovery in the upcoming months while, at the same time, putting into place a plan for your business that will weather a double-dip if and when one should occur. Put into place the three small business best practices outlined in this article: Trust an experienced business coach to offer strategic planning and continuous monitoring, focus on the near-term rather than far-term, and re-invent yourself and your business to ensure your small business success.
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Dr. Susan L. Reid is a business coach and consultant for entrepreneurial women starting businesses. She is the award-winning author of Discovering Your Inner Samurai: The Entrepreneurial Woman’s Journey to Business Success, and offers a free PDF of her most popular chapter, “Doing What You Love: Multiple Streams of Passion,” for those who want to see how persistence, patience and practice can really pay off.
