With the news that the United Kingdom is currently shrinking, potentially in a long term economic recession, I thought it would be helpful to share some thoughts about what that means for businesses like yours and mine and what we can all do to be more resilient and prosperous.
The real truth.
Firstly, let’s deal with the facts. The economy has shrunk by 0.2%. That means that for every £100,000 revenue, we see just £200 less. That’s a tiny difference. It’s not evenly spread throughout the economy, though. Some businesses will have seen a significant change in revenue, more down and up, but rest assured, some companies are doing well right now.
Secondly, let’s deal with gross domestic product (GDP). GDP is a poor measure of how well individual businesses like yours are doing. It’s simply a total of spending in the economy. If we take more time to spend the same money, GDP will fall too. 0.2% equates to about 17 hours of delay in each buying decision across the economy.
Some businesses are taking longer to make buying decisions; others are spending less. Yet some companies will thrive. Which ones?
In my experience, over 17 years of running my business, through past recessions and banking crises, I’ve seen something consistent. Companies that focus on their mastery, who develop and hone their skills to be the best they can be, always thrive. Always. When businesses restrict spending, they drop the least skilful and experienced suppliers. If you are a novice or a practitioner, you will be in their sights. Experts and masters, on the other hand, will tend to get more work, not less, particularly in the business-to-business service sectors.
To thrive, you must enhance your skills, build more significant experience and master your art. When you do that something else happens too, you can start to charge a premium rate, so your revenue will go up without your workload increasing. That’s neat and anti-recessionary.
A business that thrives doesn’t just invest in its skills; they also do more marketing in a more targeted way. They have a great story, and they tell it well because they have the examples of their best work with successful clients. That will build substantial credibility in the reliable capability to deliver exceptionally well.
Mastery is a journey, and whilst it does take time, every step brings benefits. Benefits that protect you and your business from the vagaries of the market. I work with established business owners to support you on that journey, so that you thrive, and build better business that stands you out at the top of your market. I know the opportunity that an economy-wide recession can bring for those who choose to create the strength that mastery brings. The first step of that journey is to have a conversation.
Great article as always William. If clients prove more scarce, time should be used on the business. Marketing, improving processes and building your offering.