What is a small or medium business to do in the current, unstable global and (US) national economy? I was reminded yesterday, while reading the Businessweek small business e-letter, of just how unclear the path to economic recovery is — or whether we are on the road to recovery at all? No two “economic experts” agree —
- It’s a V shaped recover and we have passed the bottom
- It’s a W shaped recovery and the double – dip is coming in the second half of 2010 or in q1 2011
- The US economy needs another stimulus plan (I have lost count. Is this the 4th?)
- Government stimulus plans have had little or no impact on economic recovery
- When government stimulus is withdrawn later this year, the unemployment will rise
What is the owner of a, just for a practical example, $50M plant nursery that sells to big box retailers to do?
- Small and medium business should be acting aggressively to be prepared for a surge in demand in second half 2010
- n Small and medium business should delay hiring and building inventory until there is more evidence of consumer demand
How about neither?
The smart nursery owner needs to plan for either, both, or neither eventuality in the next 12 months by focusing on the only important measurement – bottom-line profitability. A consistent record of profitability in good and bad economic conditions is the key to great customer confidence, employee loyalty and flexible, affordable, available credit.
Bottom-line profitability doesn’t just happen. It is the result of careful analysis and planning. It does not take a lot of executive time, but it does take executive focus. To learn more just click here http://www.cordiconsulting.com/thought_leadership.html