Winter. The Great Separator

Recession, Recession, Recession. It seems like that’s all we hear about. The word elicits fear in most people, causing a reaction that, in many cases, makes their fear reality. If no one told us we were headed into a recession, how would we know? There is no crystal ball to tell us when such an event will take place. We’d figure it out on our own and react accordingly, which is best done by taking aggressive action.

Aggressive action for business wouldn’t be to cut people, reduce marketing, and cut back on those things that make the business unique and special to our clients. Aggressive action would have taken place months or years ago when a strategic action plan was created and accounted for downturns in the industry and in the economy. It would have included building systems to account for such variations in business and stockpiling cash so that investments in the business could be made at a time when less strategic leaders were slashing to survive.

Discussions of recession also elicit anxiety in team members. Leaders that talk about recession as a negative to the business cause their team to question the viability of the business and the leader’s preparedness for such a downturn. It can cause good people to start searching for opportunities elsewhere for fear of layoff or job loss. Such behavior can be detrimental to the business and exacerbate the effects of an economic downturn on the business.

Recessions are like winters. Some are mild, while others are wickedly brutal. One can choose not to prepare and gamble on a mild winter and survive. However, all it takes is one brutal winter to be catastrophic. Taking the approach that it will never happen to me is a bad idea. All one must do is look to the state of Texas a few years ago for a solid example of why you must prepare for the worst. Failing to prepare can be deadly. By being prepared for the worst you can glide through the easy winters and survive the tough ones.

Business leaders must be visionary, which includes a plan for the inevitable. Like winter, recessions are guaranteed. They will happen. We know this to be true. What we do not know is when they will happen, how long they will last, and how severe they will be. Therefore, planning for the worst and hoping for the best is a success strategy. It is also a strategy that allows prepared businesses to slingshot past their competitors as they come out of a recession. Those that had the resources to maintain their marketing, business development, and team development efforts and are the ones who were historically in the best shape to keep up with pent up demand that many times follows a downturn.

Recession or no recession, the goal should be to have a plan for blowing everyone’s doors off by being the best prepared to handle a downturn. It’s easy to stay warm and cozy when the temperatures are mild, and the sun is shining. Any leader can do that. Few can navigate a blizzard blindfolded, which a bad recession can feel like at times. However, many do. Those that do are a lot further down the road when the sun does eventually shine and melt away the snow, clearing the path to continued growth.

Renaissance Leadership Group is a full-service business development company driven by the goal of helping entrepreneurs realize their vision for their business.

Visit Renaissance Leadership Group at www.renaissanceleadershipgroup.com to learn more.