Surving the Recession is a Right-Brainer

Jeremy Grantham is one of those people that is often quoted in the financial press. He's considered a visionary and was one of the people who warned that the sky was falling while guys like Ben Bernanke and Henry Paulson snickered. He's also known for giving his keen perception to his innate right-brain dominance.

Here's what he told Forbes Magazine in January 2009 interview:

Please explain your theory of right- and left-brained CEOs, and how we keep choosing the wrong ones at the wrong times to lead American firms.
I think what I call the Great American Executive is always going to be good at dealing with crises after they've occurred. Always moving fast, focused, short-term-oriented at making decisions. Usually they're short-term-oriented decisions. And he has a lot going for him or her. The weakness is that special outlier events are never, ever seen coming. They're just not the kind of people that think along those lines. That's a more creative, right-brained activity.

Okay simply what he's talking about is the ability of right-brain dominant people to see the big picture--to know what's coming. And the special outlier event he's hinting at is what we're experiencing now in our global economy. If you are right-brain dominant your chances of seeing what's ahead, planning for it and coming out on top are greater.

Grantham has also been quoted to say the right-brain thinkers are better at long-term investing. While the left-brain people are suited for short-term actions and managing in the moment. Right-brainers can't organize the papers on their desk.

But using your brain isn't just for the head of the Treasury Department or CEOs. Right-brain thinkers can be more positive thinkers as well. And a positive outlook seems to be another key to coming out on top of a down economy. This article by USA Today gives examples of business that rose from the ashes of failures and layoffs.

If you don't know which brain hemisphere is your dominant this test seems to be most academically used. And don't worry, though something like 95% of the population is right-handed that doesn't mean you are left-brain dominant. But even if you are, just hang out with a right-brain friend and you'll be fine.

oh, P.S.: I'm a right-brainer, oh yeah!

Your Job is Not Recession Proof

Hey, good news--No job is safe.

Google "Recession Proof Career" and you'll get tons of websites that will give you: 8, 10 or 7 ways to protect your job, standout at work, develop your skills, use social networking, etc. Much of it is great advice, but the truth is that no one is immune to the economy.

So why is this something to cheer about? Because it means this is your chance to play around with a variety of jobs. To make it now you've got to start thinking outside the job and DIVERSIFY your career. The new career model won't leave you stuck in a cubicle.

Isn't everyone always droning about how they hate getting up in the morning to do the same old thing? Go to the same old job? See the same old people?

Well if you haven't been forced out of the rut by layoffs and closures, the best way to recession proof your career is to mix it up. Now is your chance to enrich your life and start bringing in income by playing around with different things.

Some ideas for additional income sources:

• Open an eBay shop


• Start consulting


• write a blog
  
• sell your crafts


• get a second job that doesn't consume your brain


• launch your own business (this might seem crazy, but if you don't need a lot of start up money this is a good time to play around with your business model)

The key is to think of your income source as you would an investment portfolio. Put all your prospects into one investment (your job) and if it goes under you are screwed. But if you diversify by having several income sources, you've always got something that will bring in cash.

Does taking on more work make you tired just thinking about it? Look at your life. What do you do when you come home? Can you squeeze in a few extra hours? Stop surfing the web and open your online job.

Through diversification you'll add more depth and excitement to your life. Remember those old 60s tv shows. The dad went to work, the same job everyday. Didn't you feel sorry for him?

Long gone are the days when you worked for one company and retired with a comfortable pension. And gone are the days when your 401(k) was your ticket to a charmed retirement. Even early retirement buyout deals are in the past. Now even offering health insurance is a burden for many companies.

Sure some industries will fare better than others, but for most there is too much that is out of your control. If you are in sales you might be working extra hard, but if your buyers aren't able to make it work on their end it will effect you. If you work for a large company you can't do much about benefit cuts.

Jump in to new opportunities, but as always be cautious about get rich scams and anything that requires you to dump money into it.

Bad Economy is Good for Your Business

You read that headline correctly. Let me be more specific a struggling economy is good for business. Businesses that anticipate and prepare for recession will survive. But, good businesses don't just survive during recession they thrive. That's because good business leaders are motivated into action when things get tough.

3 Recession Survival Tactics
In the Philadelphia Business Journal, Strategic Business adviser Carter Schelling presents precautions businesses take to prepare for looming recession, likening it to fire drill. "Companies," he says, "get better at what they do during bad times."

First, Schelling suggests that business owners gauge customers' ability to resist recession and redesign customer offerings accordingly. Isn't this the basic rule of business? Offer customers what they want, where they want it, when they want it. Your business is only successful if your customers deem it as necessary.

Second, use lean principles, replace unhappy workers with those more motivated, eager and highly competitive. There is nothing more detrimental to a business than sour employees. Every employee from the every rank must be encouraged and motivated. Forget looking at employees as overhead, salaries or bodies. Likewise don't think of layoffs as cutting costs. The right employee, including the person who answers the phone, is a sales representative.

And finally, over-communicate. Talk to your employees. Explain strategies to your customers. Encourage communication back from your customers. Don't be afraid of what you'll learn it could save your business.

Recession Proof Your Small Business

I once worked in an office where words like "problem" "trouble", and "difficult" were not allowed. It seemed silly at first. If you let a word like that slip one time you were corrected like a child, "It's not a problem, it's a challenge." The next slip would just get you a sideways look. Everyone quickly learned to speak only of "challenges" and even though we all knew it was code for some nasty problem using the word "challenge" actually did make most of start to view problems as opportunities. Such are the times we are currently experiencing. SBOs who view this not as a bleak and uncertain time, but as one of challenge and opportunity will come out of this with stronger small businesses.

It's time for business as UNusual.
Review your market and offer something new. It might be repackaging of items or a shift in the way you manage clients. Start looking at your products and services in a new light. Break down your product into smaller more affordable bites. For example, if you are a personal trainer you might find clients reluctant to splurge on such a luxury--try offering group trainings that are more affordable yet allow you to reach more people in less time. Be sure that the changes you make offer a perceived value to your customers. So if you own a coffee shop, don't reduce the size of your cups, instead you could get creative with your menu or add community events to entice more traffic.

Take customer service to a new level.
The biggest advantage small businesses have over large is human connection. Get personal with your customers. Understand their particular challenges and help create solutions. People are always more willing to work with someone they know and trust. If you own a salon find those customers that haven't come in for awhile. Give them a call, make it personal, and invite them in for a special treat.

Review your accounts receivable.
Keep an eye on customers who might show signs of having trouble paying. No matter what your payment terms make them clear and don't let things slide. A customer with a cash flow problem could bring you down with them. This isn't the time to let friendship cloud your judgement.

Focus on the basics.
Keep a tight watch on your cash flow and keep funding your emergency fund. Review your balance sheet and bank accounts frequently.

Don't ignore credit.
Consider increasing your line of credit now in case of emergency. Secure the best rate that you can--it's easier while your business is still in good standing. If things should turn south it will be much harder to get the cash you need to turn things around.

Trim discretionary spending.
Even a tightly run small business can find a little fat to trim. Hold off on major purchases that aren't absolutely necessary. Find ways to reward employees without overspending. Reduce overtime and travel expenses. Use technology to your advantage to find more efficient and cost-effective ways to operate.

Don't fire marketing.
So many companies make the mistake of firing the marketing team/firm, and cutting the advertising during down times. But these are the things that bring and keep business. If necessary you can reduce your marketing and advertising budget, but keep it focused and creative. Look for new ways to reach customers. Find an funny, innovative or unique way to present your business.

So, as you look at your balance sheet, customer database, to do lists, and accounts receivable give a smile and see the opportunities that shine through these...eh, hem...challenges.