• The Weather and The Business Cycle

27th May 2008

The Weather and The Business Cycle

posted in General |

The weather here in San Diego lately has been either 15 below normal or 30 above normal, nothing close to our usual norms. It has been a very strange spring so far. But I am not here to talk about the weather.

I find this weather pattern similar to small businesses business cycle – there is no “normal”. Small Business is not about the steady state. It is about swings in revenue, ups, downs, ins, outs, stops and go’s.

The issue is how you react to them. You can cry “woe is me, life is so unfair” or you can deal with it. I recommend you learn to deal with it. You can learn to mitigate the wild ride of your business cycle through personal and business positive actions.

You personally can stay out of your funk. You can stop making excuses for the difficult ride you’re on at a particular time. Learn to get positive and stay positive. If I can learn this mindset you can, trust me I am (er, was) the proverbial glass is half empty guy. Then my wife and decided to banish all negative aspects and influences from our lives.

The change (even through my car accident and back surgery) has had remarkable results. In addition to a new outlook on life, our children are happier and more productive; we have new and exciting business friends, new and exciting business projects and products.

While I am still a skeptic, I believe that this positive outlook has led to all of these things!

In your business you can work to mitigate the wild swings in your business, first brainstorm what is causing them. Don’t look anywhere else but inside your business (no blaming the economy, the government, etc.) and only inside your business.

Then brainstorm the actions you need to take on the root cause of your swings. For instance, if you have wild swings in revenue – is this because you have way too much concentration of revenue in one customer or client? Can you diversify your sales, can you come up with new channels to exploit, and can you down sell, cross sell or up sell? Are you prospecting enough, in the right place, at the right time to the right suspect? Can you systemize these solutions?

Have you tapped into your peers and advisors for advice and counsel (another one of my favorite subjects)? The answers are there – you have to find them and only you can.
 

This entry was posted on Tuesday, May 27th, 2008 at 9:57 am and is filed under General. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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