subject: Prepare for the Worse but Hope for the Best [print this page] While I dont have a personal crystal ball to predict the future, I continue hearing the so-called "financial experts" forecast that 2010 wont be any better than 2009; some even say it will likely be worse. Now Im not saying that we should just give up, roll over or panic, but I am saying that as long as we have an inkling of what may lie ahead, we will have a better chance of planning for our future economic situation. As they say, prepare for the worst while hoping for the best. The global economic situation turned from bad to worse during the past 18 months and it probably wont get much better in the near term. You can be assured that unless you keep the proper attitude, plan for any possible financial downturn and create a solid set of goals for the coming year, you will be in a weaker position. Ive seen some prognostications across the board that the typical American consumer will have to "tighten up the belt" just a little more in the coming months. Some retailers are saying that even if the customer has the wherewithal to pay for items, the chances of finding them might be hindered because many retailers are hesitant about holding a large inventory. One thing is certain. Its the American (and global) consumer that will ultimately bring us back to financial solvency but not until they are confident enough to start spending their hard earned dollars (yen, euro, or pounds) again. The current global economic downturn has really exposed the financial "underbelly" of many personal households. No family ever handles a job loss well, but the ones with enough cash on-hand and a well thought out emergency plan will be able to handle it better than ones that dont have them. The strong economy of the past, fed by a number of factors including cheap credit, concealed the damaging decisions that many people made in their personal financial lives. So, lets say the economy begins to improve this year; you can be sure that the recovery process will take many more years to come. Lets remember that there are 15 to 20 million Americans out of work and that number doesnt seem to be getting any smaller as job openings havent increased either. The paradigm of how the consumer spends has definitely changed and isnt likely to change back to the way it was before. Today the American consumer base is either trying to pay off their debt or, more likely, allowing their accounts to default because they can no longer afford to pay the bills without employment. Americas small business has the biggest challenge ahead of them. It is small business that keeps most of America employed but in the current situation and under the current set of rules, expanding the workforce just isnt very likely. Through all this, if your small business is still breathing (even if only shallow), start the new year by double checking your business plan and see if its still valid in todays economic reality; some changes just might be necessary. This can be a great time for you to use your networking community to find the support and information you need to make the difference between success and failure; you might even consider a strategic partnership. People and business everywhere are trying to find better ways to stay afloat and your business just may be their answer. They need to know youre there and advertising your service or product has never been more essential. If they dont know youre there then they wont be able to find or use your business or service. That will certainly hurt your bottom line. I am very optimistic about our country and the ability of its people to find solutions. Americans do their best in times of crisis and I see the nation finding the answers that will ultimately turn this situation around to the positive. It may take some time, but we can never give up or give in. What can you do? Get up every morning, become dedicated to your plan and never allow the situation to get the best of you. This will turn around eventually but its going to take some hard work and determination to create a solid economic base. Dont be mislead, its going to take a lot of hard work but the sooner we start rebuilding our personal and professional economic foundations, the faster our lives will start to improve. Lets get to work.
