Just like the seasons of the year, the economy cycles.  It appears that we are headed for a heavy economic winter season.  Winter is not bad.  It just requires preparation and an appropriate response to make it good.  A fundamental principle for facing any challenge is to understand that circumstances are neither good nor bad.  It is your response to circumstance that turns that circumstance into a beautiful work of art or a devastating disappointment.  It is essential, especially in challenging times, to be ready to create, change, and innovate.  People who are filled with fear, worry, and distress are not in a creative frame of mind.  Remember that spring will eventually come, and what you have created in winter will be ready to plant and grow in the spring.

So first let me offer some thoughts about mental attitude.  A positive attitude is the number one ingredient for thriving in these tough times – not just surviving, but thriving! Difficult times provide an opportunity for you to become a leader.  As the majority moves down, you move up, which makes you attractive.  Times like these provide a platform to display character qualities like perseverance, hope, and determination. Hardship and difficulty will either make you bitter or better.  It is how you choose to respond that determines the result.

Perspective is the key.  Do you see problems, challenges, or opportunities?  The fact is you will find what you are looking for!  Do you see a dirty piece of coal or a beautiful diamond?  Are you a whiner or a miner? 

Don’t follow the herd. Fear, panic, lack of confidence, and worry…they all kill creativity, innovation, and the willingness to change.  It seems that many people retreat to hours of gazing at the media as some sort of escape in tough times.  You need to take ownership and responsibility for your own thoughts.  A little news goes a long way.  Your internal response is more important that having every last opinion and detail from the media who focus on the negative and the crisis. 

Now for some practical business advice. 

#1            It is critical for business owners to know and watch your key financial numbers, especially cashflow.  With tight credit and less options available for cash, you need to be keenly aware of your cash position.  It should be checked at least monthly, and maybe even weekly and daily depending on your business.  You also need to be proactive in planning your cashflow and set logical trigger points in your budget to drive your business decisions.  When the plane is in the fog, you need to fly by the instrument panel and not the way you feel. 

#2            Customer service and delivering value is imperative.  Customers will be really considering what is valuable and important in their life and what is not.  Mediocre service and a lax attitude is not a good thing in any economy, but it is critical in tougher times.  Your current loyal customers are your lifeline – hold them close and treat them accordingly.

#3            It’s time to trim the fat. It’s time to take a close look at your cashflow, budget, and team and trim away the excess.  But it’s not time to get out the hatchet and start to fearfully chop and destroy your business in a panic.  This is the time to be a surgeon and carefully dissect away the little foxes that eat the vine.  

#4            It’s time to look for great people. The market will likely be flooded with great people looking for a job opportunity.  Many larger organizations will downsize, and turn some great people out into the market place.  If you have been challenged to find great people in the past, this may be the time. 

#5            This will also be a buyer’s market for businesses.  There will some great small businesses that will be for sale.  Entrepreneurs that are looking for opportunities will be ready to take advantage.

Finally, this is the time to strengthen your relationships with your business support team.  If you don’t have an accountant, financial advisor, business coach, and attorney to walk with you through this storm, go find them.  It is important that each support team member also carries an “opportunity” perspective as well.  A great set of advisors provides that outside perspective and balance to help you make the best decisions.  Champions have always surrounded themselves with great people.

So look for the abundance of opportunities in this challenging season, and get ready for a great spring!