Wayne Dyer Wisdom for Tough Times

Wayne Dyer, the prolific author and life philosopher, has had an enormous impact on the development of my own life philosophy. And, he is an important part of the story of the Wisdom of Scotty, a keynote presentation I will be bringing to fund raising events of charitable organizations in 2009.

There are many things that I have learned from Wayne that are useful in dealing with these turbulent times. But, that which comes top of mind is his reminders that "teachers will appear" when we open to the wisdom of the universe.

The tough times are sure to bring out the best in some people, and the worst in others. In the former group will be people who summon up courage and compassion beyond what even they knew they had. These will be people who can inspire you to follow their lead and to operate with courage and compassion.

In the latter group will be those who succumb to their fears and stresses and bring pain to others. These people will be "teachers" of what you don't want to be like.

These are rapidly becoming times like none most of us have experienced in our lives. We can benefit from the wisdom of new teachers....who will appear...if we have an open mind.

What new teachers have come into your life recently?

What kinds of teachers do you need to come into your life to help you prosper through times?

Is your mind truly open to new teachers coming into your life?

Coming tomorrow: The exceptional wisdom of Bob Tormey. You can read the entire series of Lessons from the Masters by starting here.

Kat Tansey Wisdom for Tough Times

When it comes to understanding change, I know of few people who understand it better than my dear friend Kat Tansey. On both a professional and a personal level, Kat has had experiences that make her someone worth listening to when it comes to the changes one needs to make to prosper in tough times.

On a professional level, Kat is a co-author of Winning the Change Game. And because of her years of experience in the field of organizational and personal change she was chosen earlier this year as the Exceptional Wisdom scholar on the subject of change.

On a personal level, Kat experienced a traumatic series of changes that are chronicled in her just released book, Choosing to Be, Lessons in Living from a Feline Zen Master. This heartwarming story shares Kat's experience in literally saving herself from a severe unknown illness (at the time), which would later be discovered to be Chronic Fatigue Syndrome. She attributes her being saved to lessons she learned from her two beloved cats, Catzenbear and Poohbear.

Kat believes those who prosper in these tough times will be those that understand that "Being" is as, or more, important than "Doing." Kat believes that one of the most signifigant problems with tough times is that we can easily slip into a state of fearful reacting and frantic doing. As Kat likes to remind her coaching clients:

What happens when you have the misfortune to step into quicksand? The more you struggle, the faster you sink.

Those who prosper in these tough times will make time to get themselves centered about the things that are really, really important in one's life. Their actions will then spring from their knowing of what is really important.

What is interesting is that Kat, like Cheryl Richardson, believes that everything starts with taking care of oneself. In good times, or in tough times.

Have you significantly stepped up your efforts at taking care of yourself?

Coming tomorrow: The exceptional wisdom of Wayne Dyer. You can read the entire series of Lessons from the Masters by starting here.

Cheryl Richardson Wisdom for Troubled Times

Over the next two weeks, I will be sharing what I am calling Lessons from the Masters. Every day, I will feature one tip for personally prospering in tough times from people I respect as being among the wisest people that I know. Some are close friends, some are a mentor to me, and others are people who have somehow adopted me as their mentor. No single person can have all the answers for how to prosper in these tough time, as these times are so unique. But, I hope that by offering up this montage of tips, readers will be able to fashion their own game plan for personally prospering in these times.

First up in this series is a woman whose wisdom I respect enormously and who has made a huge difference in my own life, my friend Cheryl Richardson. Cheryl is a bestselling author and well known speaker. She has been featured on Oprah many times, has had two of her own PBS television specials, and has her own weekly radio show on Hay House Radio.

Cheryl’s latest book will be released in the next month and is perfectly timed for these tough times. The Art of Extreme Self Care is sure to become another best seller for Cheryl Richardson.

The thesis of Cheryl’s book and her recent speeches is that it is not enough to just commit to take care of one’s self. Our goal must be to practice EXTREME self care, especially in turbulent times.

In her typical divine fashion, Cheryl advises readers and attendees at her speeches that taking care of ourselves is not selfish; if by doing so, we then take care of others. In these troubled times, your loved ones, friends, co-workers and community will need your help even more. To be able to help them, you must make taking care of yourself...physically, mentally and spiritually...your highest priority.

Exceptional wisdom from a highly respected thought leader.

Coming tomorrow: The exceptional wisdom of Kat Tansey.

Recession Proof Businesses

I am honored to be listed on this page of top resources for info on Recession Proof Businesses. I am listed with some top talent. But, the truth of the matter is that:

I don't believe that any business is really recession proof.

The depth and severity of this economic downturn will test the mettle of all executives and all business owners. Sure there are some businesses that will naturally do better in the downturn...but, there are no sure things in this economic snowball.

The closest thing to a sure success, in business or at a personal level, will be those that skillfully embrace the recession. See my recent series of posts on Embracing the Recession to learn why "embracing" is so important.

Dave Carpenter Selected as Host of the Restructuring America Radio Show

Boston based Exceptional Wisdom, Inc. has selected Dave Carpenter to be the host of its newest weekly radio show, Restructuring America. Every week, Dave will be interviewing leading players involved on the front lines of restructuring American companies to enable them to survive, thrive and hopefully prosper in these tough times, and beyond.

Having himself previously been on the restructuring front lines for 25 years, Dave Carpenter is well equipped to ask his guests the penetrating questions that will give listeners an insight into how this economic downturn will play out. His guests will include leading restructuring attorneys, consultants and investment bankers.

The show airs live on Exceptional Wisdom Radio, every Friday at noon (EST), starting in January. Because Exceptional Wisdom Radio is internet radio at its very best, listeners can also listen, at whatever time they desire, by using any one of the convenient means of access.

Dave Carpenter Shares the Wisdom of Scotty at Charitable Events

Because of Dave’s concern about the impact of the recession on charities, he has committed to making twenty presentations…in 2009…of The Wisdom of Scotty at no cost to non-profit organizations.

The Wisdom of Scotty is the heartwarming story of what transpires when a multiply disabled young man (Scotty) meets a successful business consultant (Dave Carpenter). Besides having some very powerful life lessons, the story is unique because of the unexpected role reversal wherein Scotty becomes Dave’s teacher.

It would be wonderful if Scotty could tell his story directly to audiences. However, because of the severity of his disabilities, it is Dave who is left with the responsibility to share Scotty’s profound wisdom with the world.

Dave Carpenter is a gifted communicator who can be the highlight of you charitable fundraising event. He has long been a popular speaker and highly regarded consultant in the corporate world where he is best known as someone with a special talent for taking the complex and making it simple to understand (and implement!). You can learn more about his many activities by visiting the LinkedIn profile of Dave Carpenter. And, you can get information here on booking Dave to speak at your event.

Dave Carpenter Presents Strategies & Tactics for Prospering in the Recession

This blog has been designed to help executives, entrepreneurs and everyone else to learn an approach to prospering in tough times. It is intended to be more than just a “feel good” site. The challenges of this economic downturn, for both business and individuals, are very real. In fact, they are as severe as anything I have witnessed in my life time. Businesses and individuals need strategies and tactics relevant to the severity of the circumstances.

I feel very, very fortunate that my entire life seems to have been amazing preparation for these times. My six Outward Bound wilderness experiences have been great preparation for surviving in challenging environments. My work with Scotty, a multiply disabled young man for whom my wife and I are his caregivers, has taught me valuable life lessons about the role of the right attitude, especially under challenging circumstances. My twenty five years on the front lines of the Restructuring world has taught me the strategies and tactics that are critical to saving a company. And, my dozen years of advising growth companies has helped me to hone my understanding of what it takes to start and grow a successful business, no matter the circumstances.

Because of the pain I see so many companies and individuals feeling, I decided to launch this blog. Through regular posts, I will be sharing my best thoughts on what I…and others…believe will be the strategies and tactics for surviving, thriving, and even prospering in these tough times. Does Dave Carpenter have all the answers? Hardly! Like every one of you, I learning new lessons every day. But, as I observe, and even sometimes stumble about, I will share my very latest thinking on what it will take to prosper in the 2008-2009 recession.

Here are the top posts, that readers have communicated as being the most helpful to date…some of the posts deal with business issues, others deal with personal dimensions:

• Tough Times Never Last
• Put On Your Oxygen Mask First
• Abundant Opportunities
• Saving Your Job
• Finding a Job
• Embracing the Recession
  

To learn more about my background, you can visit the site of Dave Carpenter. Or, you can read the LinkedIn Profile of Dave Carpenter.

Your thoughts, comments and observations to any of my posts are most welcome, as is your recommendation of this blog to family, friends and co-workers.

Thanksgiving Blessings

In challenging times, it is sometimes easy to forget to take the time to be appreciative of all that we do have, as opposed to focusing on what we don't have. Without a doubt, there is more pain being experienced throughout the U.S., and even around the world, then there was one year ago. But, almost all of us nevertheless have much for which we can...and should...be appreciative.

So, on this Thanksgiving Day, I want to wish everyone in the U.S. a wonderful holiday. May the joy of sharing some turkey and trimmings with family and friends triumph over any hardships you are enduring.

Today is also a great day to think about the fact that we are blessed year-round. Gratitude is one of the most powerful forces known to mankind.

There is no masking of the challenges so many families are feeling. But, the sun will rise tomorrow. It really will! And, many people around the world will awaken and reaffirm their conscious choice to prosper in these tough times. Will you be one making that choice?

Up next: Over the next week, I will be sharing tips...from people I respect immensely...as to specific things we can all do, on a personal basis, to position ourselves to prosper in these times. Tomorrow, a lesson from someone very, very special in my life.

Recession Impact on Retail

If there is an industry that is taking it on the chin in this downturn, it is retail. Like in most industries, while many are suffering, some are prospering (ala Walmart).

As with other industries, some of those prospering will do so because their market position supports continued business in a downturn. That is not luck...that is being strategically smart! After all, until the most recent extended period of prosperity, the U.S. economy has experienced downturns every 8-10 years. Prudent management will build companies that can prosper in good times or bad times.

Beyond strategically thoughtful market positioning, retailers are long overdue for the kind of re-engineering of their businesses that so many other U.S. industries need. The good times have masked the fact which has long been known by savvy retailers that the industry has many fundamental problems.

For years, easy credit for developers had retailers opening new stores at a rapid clip, with each new store often cannibalizing sales of existing stores. The result was not enough customers to support bloated occupancy costs.

We are overstored in the U.S., especially with internet shopping draining off a steadily increasing share of total retail sales.

But, the fundamental problems of retailing go far beyond being overstored. Changing media habits of consumers has reduced the efficiency of traditional advertising. Most retailers have lost the "fun" element in thier business model. And, many retailers have trained their customers to just wait for sales or coupons.

Most troubling of all, most retailers have been slow to embrace comprehensive customer loyalty programs that would have any of us wanting to keep going back to the same store. Couple this failure with store service experiences that are often void of any evidence of customer appreciation and it is no wonder retailing is in the dumps. For far too long, good times have masked the fundamental problems of this industry.

I remain convinced that 30-50% of the retail chains in this country will not only go bankrupt by February of 2009, but ultimately disappear from the retail scene. That is the bad news.

The good news is that the downturn will foster a new group of winners...retailers who create business models that reflect the changing face of retail.

Business models that will cater to changing consumer buying patterns and that support the company prospering in good times or bad times.

Retailing isn't dieing. Retailing, as we have known it, is what is dieing.

And that is a story line that will play out in industry after industry.

Recession Impact on Automotive Industry

It doesn't take a genius to see that the automotive industry is being severely impacted by the recession. Many consumers are scared, and consumer credit is as tight as we have seen in decades. As a result, auto sales have plummeted.

The thesis of this series is that companies and individuals should be embracing the downturn...i.e., making the most of the changed circumstances.

So what is the automotive industry doing? Well, at least the (once)Big Three of GM, Ford and Chrysler are off to Washington to tell lawmakers that the Federal Government must bail them out or there will be a catastrophe across the land. Not exactly the kind of thinking that I am suggesting is involved with adjusting for the changed times.

Speaking of not adjusting, the CEO's of the Big Three were discovered to have each flown solo, by private jet, to the Washington (DC) hearings.

What were these three CEO’s thinking? It is precisely this kind of thinking that has me, and many others, believing that the Big Three do not deserve any special treatment. (I come to that conclusion with a very heavy heart for the ripple effect that will impact so many from a bankruptcy filing by any one of the three.)

I love the wisdom of Seth Godin and his recent blog post on What To Do About Detroit is a good example of embracing change in the automotive industry. Supporters of a government bailout will undoubtedly scoff at his mind stretching idea…but, then again, lets all scoff at CEO’s who don't understand the importance of personal role modeling in challenging times.

For a less radical approach to dealing with the challenges of the auto industry, consider Jack and Suzy Welch's recent Business Week column, GM - A Case Against the Bailout.

The point is that more of the same is only going to bring more of the same. Business and executive jets as usual are hardly evidence of adjusting for changed times.

Next up: A look at how the retail industry is responding to the recession.

Recession Impact on Restaurants

Consumer survey after survey report that one of the areas of discretionary spending that is most often targeted by consumers for reduced spending is restaurants. A perfect industry to test my hypothesis that good businesses can prosper in these tough times....if they will embrace the recession and adjust their way of doing business to take advantage of the downturn.

Now, my consulting work has me traveling a significant portion of the time. As a result, I eat in restaurants much more frequently than most people. I am certainly seeing many restaurants and chains that are being significantly impacted by the downturn. And, most restaurant companies are publicly reporting reduced customer counts and lower average checks.

The deteriorating results are to be expected when chains just continue doing business “as usual.” Consider my experience at a delightful, all you eat salad & pasta bar chain in South Florida.

Recently, I visited one of the restaurants in this chain at 7PM on a Sunday evening. The place was packed! Actually, I should not have been suprised for they have long offered a great value at a fair price. And, as you would expect, the “all you can eat” feature is sure to be attractive in tough times.

After passing through the salad line and being rung up, I (and other guests) faced about a 3 minute wait for tables to open up. Mind you, this was a non-holiday Sunday evening!

Here is one chain that shouldn’t be hurting…in fact it should be taking gobs of business away from casual dining restaurants.

Regretfully for the chain, they were treating things as business as usual. There was no apology or explanation for the wait. Now, 3 minutes is not the end of the world. But, the point is that this restaurant is missing an opportunity to turn their crowds into a plus. Where were the magic words validating my visit “Sorry for the short wait, as you can see people are really responding to our wonderful value meals. Will this table be acceptable for you?”

At no time did anyone thank me for visiting…perhaps tolerable in good times, inexcusable in tough times. And where was my “bounce back” coupon to give me a reason to make my next restaurant visit back to them?

Sadly, this chain…at least on that Sunday night…was doing the same-O…rather than adjusting for the times and capitalizing on the downturn.

Times have changed dramatically and those businesses, in any industry, that don’t quickly adjust are not likely to make it to the point when good times return.

Some restaurants are in sectors and/or locations where failure is almost preordained in these tough times. But, sadly, others are dooming themselves by ignoring the winds of change.

Next up: A look at how the automotive industry is responding to the recession.

Obama Embraces the Recession? Why I Certainly Hope So!

Set aside politics. What is the mindset of President-elect Barack Obama about the recession?

Last week, in my series on Embracing the Recession, I discussed four possible mindsets: denying the existence of the recession, fearing the recession, accepting the recession, and embracing the recession.

Now I claim no particular insights into the mindset of the President-elect. But, what should we all hope that Barack Obama has a mindset?

How would you feel about President-elect Obama taking Office at such a critical time with a mindset of denying the existence of the recession? I certainly hope that will not be the case!

Or, how would you feel about him taking Office with a mindset of fearing the recession? Do we really want our leader cowering in fear? I certainly don’t!

Or, how would you feel about him taking Office with a mindset of just accepting the recession? That would be painful and I, for one, certainly don’t want that!

What I hope, and expect, is that President-elect Obama is a leader who will embrace the problem and draw upon our country’s strengths and experiences to fashion strategies and tactics that will stop the snowball of the recession and create permanent improvements in our economy and our world-wide competitive position.

Now, President-elect Obama is extremely well spoken and is certainly not someone who needs others to speak for him. But, I was encouraged by the recent statement by his White House chief of staff, Rahm Emanuel, when talking about the economic crisis:

“You don’t ever want a crisis to go to waste; it’s an opportunity to do important things that you would otherwise avoid.”

Our country has many fundamental financial problems that have festered for far too long. Let us hope that President-elect Obama rallies the country around taking the hard medicine needed to reduce our energy dependence, improve our global competitiveness, and to restore global faith in our financial markets.

Embracing the recession is not about being happy that the downturn has occurred. Instead, it is about using the downturn to accomplish what previously might have been thought of as not possible.

I am confident that the President-elect will embrace the recession. Let us hope that enough of our leaders in Congress do likewise.

And on a very personal note, let me hope that you also choose to embrace the recession...to position yourself to prosper in these tough times.

Next up: Over the coming week, I will be sharing examples of companies that are embracing the recession and contrasting these examples with companies - in the same industries - who don’t seem to be stepping up to the plate. First up, a look at how the recession is impacting the restaraunt industry.

Embracing the Recession

Hopefully, the three previous posts in this series have convinced you that you do not want to be one of those denying the existence of the recession, fearing the recession, or even accepting the recession. Any one of those states of mind will lead you to a place you do not want to be.

I am personally committed to embracing the recession. And, I am equally committed to get my consulting clients, my mentees, and even dear friends to join me in embracing the recession. And likewise, I hope to convince regular readers of this blog...and even you... to embrace the recession.

Now, please don't confuse "embracing" with celebrating. I am not happy to see the devastation that is occurring in companies, in families, and in individuals. I am saddened by the devastation that has begun and will likely continue for quite some time. I am fully expecting to witness a lot of pain…especially from those who choose not to embrace the recession.

Embracing is the act of accepting the reality of the circumstances and drawing on your skills and experience that can be creatively used in the circumstances to fashion winning strategies and tactics.

Embracing the recession is about stepping into the circumstances, rather than running from them.

I am already seeing winners who are stepping into the tough circumstances and adapting their plans and actions to align with the tough times. Over the next week, I will be sharing examples of individuals and companies that are embracing the recession, tailoring new strategies and tactics for the changed times. Individuals and companies that are quickly demonstrating superior results.

What is stopping you from embracing the recession? Are you afraid to be committed to prospering in the face of so many friends, co-workers and neighbors already having accepted the worst? Or, are you just plain too lazy after years of cruising through the easy times?

Up next: Tomorrow, I will share why I believe President-elect Obama is seemingly embracing the recession! And, why all of us ought to hope that he is!!

Accepting the Recession

The third response to the deepening recession is accepting it.

Accepting things as they are is one of the most common coping mechanisms that we often use to deal with things we don't like. By accepting things as they are, we reduce the fear and anxiety of the circumstance. Thus we reduce the stress from the circumstance.

Many people wander through life accepting their lot in life. Some become almost numb to disappointment by just rationalizing everything with the idea that “it just wasn’t meant to happen (for me).”

Although such an attitude can be helpful in reducing stress, it does little to help one make the most of circumstances. Not happy with your income level….worry not, just accept it. Not happy with the behavior of your children…worry not, just accept it. Not happy with your golf game….worry not, just accept it. Not exactly the approach you see from a winner like Tiger Woods who restructured his swing while at the top of the game in his quest to get even better yet.

So, are you just accepting the personal consequences of the economic downturn?

How far does your acceptance go? Have you accepted you will lose your job, or that your salary will be cut significantly?

If you are a business owner, have you accepted that your revenues will decline precipitously, or…even worse…that your business will fail?

More often than not, we get what we expect in life. We do so, because we adjust our actions to our expectations. And, our actions greatly influence our results. That is why the notion of the self-fulfilling prophecy has so much validity.

What actions are you taking that likely doom you to negative consequences from this downturn?

Up next: Tomorrow, I will cover the fourth...and least common...of the attitudes about the recession, embracing its existence. Yes, "embracing" the recession, an attitude that can help you to be one of those prospering from the downturn.

Fearing the Recession

In my last post, I shared my views about those who are denying the recession. I see even more people fearing the recession.

And, lets be clear, there is much to potentially fear about this downturn.

I say "potentially" fear as fear is such a debilitating emotion that it must be held in check.

I see so many people, in all walks of life, frozen in fear about the recession. Instead of embracing the recession, they are terror struck.

I have seen this reaction from factory workers, from retail workers, and even from professionals such as lawyers, bankers, and consultants. I have seen it from those much younger than me, people my age, and people much older than me.

Now fear can be a wonderful safety mechanism for us as it can be a catalyst for us to act, such as when our fear triggers our instinct to flee a life threatening situation. But, it also can literally freeze us in our tracks. The latter can incapacitate us, and even can destroy our health...when we live in fear for extended periods of time .

Have fears of the recession and its effects frozen you in your tracks? Are you glued to the TV watching the latest news about the recession, rather than plotting and executing a new course of action?

If -- instead of fearing the existence of the recession -- you embrace its existence and make smart adjustments to your behaviors, you can not only survive this recession, you can be among those who will prosper in spite of the recession.

Up next: In my next post, I will cover the third of the common attitudes about the recession, accepting its existence.

Denying the Existence of the Recession

One of the ways all of us deal with things we don't like is to ignore the existence of that which we don't like.

If our weight has gone up, we may not climb on a scale.

If we have bad news to deliver to a client, a friend, or loved one, we may choose to just put the news out of our mind.

Is denial of reality a coping mechanism that you use regularly in various aspects of your life?

If you are a regular user of denial as a coping mechansim, then it is highly, highly likely you are denying the recession and all the consequences of the downturn.

I wish I had a dollar for every person who tells me that they will not get laid off.

When I ask what they are doing to make sure that they don’t get laid off, few are able to cite any significant changes in the value they are creating for their employer. And, even if you are creating more value, the continuation of your job is subject to numerous factors beyond your control. Companies are closing divisions and laying-off everyone in the division. And, a record number of companies are being liquidated out of existence.

Having no personal Plan B, in the event of a layoff, is as careless for yourself and your family as driving without a spare tire (or never flat tires). Or, as careless as going whitewater rafting without a life jacket.

"It can't happen to me" is literally the famous last words for too many people.

The reality of this recession is beyond question. My earlier series outlined six reasons why this recession will be deeper and longer than most are predicting. And, every day there is more evidence to support this hypothesis.

Fortunately, what is not as clear is how the recession will impact you. If -- instead of denying its existence -- you embrace the existence of the recession and make smart adjustments to your behaviors, you can not only survive this recession, you can be among those who will prosper in spite of the recession.

Up next: In my next post, I will cover the most common of all attitudes about the recession, fearing its existence.

Embracing the Recession of 2008-2009

I have just completed an intensive week on the road visiting with clients and counseling partners of my clients. As I had marketing tune-up sessions with high-end lawyers, consultants and investment bankers, I observed a wide range of attitudes and emotions about the recession. The experience stretched my own thinking as to who will prosper in this downturn.

Of course, everybody's situation is unique. Skills, experience, current financial position, current job platform, energy, and adaptability are among the factors that will play a role in how someone will do in the downturn. But, probably most important factor is one’s attitude.

Attitude always plays a very, very important part in how we deal with any situation.

Let me be as clear as I can be. Attitude alone will not rectify every problem situation. But, the right attitude can -- and will -- make a huge difference in any situation.

I have found it useful to think of how entrepreneurs, managers and professionals think about the recession as a spectrum ranging from denial through embracing the recession.

Specifically, I see people as falling into one of four categories with respect to the recession:

1. Denying
2. Fearing
3. Accepting
4. Embracing

In each of my next four pasts this week, I will cover one category of this spectrum of attitudes. For each, I will share some of the behaviors that would suggest that an individual is in a given category. And, I will share how you can move forward along this spectrum to become one of those embracing the recession.

The notion of embracing the recession may, at first blush, strike you as being very strange. But, I hope to show you that embracing the recession is absolutely key to prospering in these tough times.

Are you embracing the recession?

Up next: Tomorrow, we will cover the riskiest of all attitudes about the recession, denying its existence.

Capturing the Right Clients and Customers in this Recession

These are times that are testing, and will test, the mettle of all business owners and managers. Especially in tough times, there is no easy money to be made, in any industry. But, in most industries, I am seeing new winners emerging very quickly. New winners who are being quick to grasp the changing paradox.

In the world of B-C (businesses selling to consumers), the winners are recognizing that the consumer is being forced to choose necessities over luxury items. Now, obviously there is a continuum on the spectrum between these two extremes, and a continuum that changes constantly as a given consumer’s income changes. For example, the consumer who has traded going to Starbucks for coffee to going to McDonalds for coffee has implicitly decided that Starbucks is a luxury item, but coffee is…for the time being….still a necessity. Another consumer, may decide that coffee itself is a luxury and give up drinking coffee entirely.

In the world of B-B (businesses selling to businesses), the winners are recognizing that their clients are in survival mode and are totally focused on helping their client to survive and prosper in these tough times.

Any businesses with an attitude that the world revolves around their needs is ripe for quickly becoming extinct.

As is often the case with tough times, one needs to quickly get back to the basics. Serve the needs of your customers or clients well and you will be able to survive, thrive and even prosper in tough times.

You don’t have to take my word for it…you can already see it happening in the markets, both consumer and industrial. Which is why these really can be great times for those with the agility to embrace the changing market conditions.

Taking the Right Business from Your Competitors

The quest for taking business from your competitors must be pursued expeditiously, but with proper caution.

Because of the times, much of the business of your competitors is not business you should take. In fact, that which you get from competitors most easily is, many times, their worst business.

Customers or clients taken from competitors who will not pay a fair price for your goods or services will only increase your challenges.

Consider, for example, the long time client of a competing law firm who suddenly finds you attractive. Is this a client who has sound reasons for changing to your firm…or might they just be looking for an opportunity to pick a fight with their existing firm so as to justify (in their minds) walking away from what they owe their existing law firm?

Or, is this a client which is rebelling against your competitor setting payment terms of the kind that you should be demanding in these times of economic uncertainty?

The quest to stabilize revenue declines, due to the downturn, must never overtake sound business judgment!

These days, almost every customer or client, which is not paying C.O.D., is a risk. Payment risk must be very, very carefully factored into your new client acquisition startegies. In these times where "cash is king," payment terms must be carefully established and then implemented.

Focus your new business generation activities on the very best clients of your competitors. And, do not lose sight of the important goal of being timely paid for goods delivered or services rendered.

Up Next: How to Capture Your Competitors’ Best Clients.

Taking Business from Your Competitors in a Downturn

Sure the economy has gone soft. In industry after industry, total industry demand is declining. For some industries, like -- for example -- the new housing industry, the decline is precipitous. But, for many, many industries, total industry demand is currently off by "only" 5-10%.

Now if you keep using your playbook from the good times (i.e., the same strategies and tactics), it is highly likely that you will experience a revenue decline of 5-10%, if not more. And for many industries, a loss of 5-10% in revenues can easily swing a profitable business to a money losing business. Ouch!

However, unless you have a significant market share (say above 50%), then a decline in total industry revenues need not translate into a loss of equal amount in your sales. It is time to take market share away from your competitors. Right NOW!

If your life depended on it, I fully expect most of you owning or managing a business could identify specific ways to take business away from competitors. Well your life may not depend on doing so, but the economic life of your business may very well depend on it!

The good news is that some competitors will not change their playbook out of a belief that this is just another media overreaction (it is not!). Others will not change because they are expecting (or at least hoping) that the downturn will quickly pass (it will not.) Others will be wedded to the strategies and tactics that made them successful and will be unwilling to make necessary changes. Others will be too kind hearted and unwilling to make the hard decisions. And, others will be ill equipped to devise winning strategies and tactics for these whitewater times.

The bad news is that some competitors will make changes, including some that could be just plain dumb…like lowering selling price to below their marginal costs. You don’t have to out hustle all your competitors…you need to out hustle enough to grow market share, profitably, in the face of shrinking industry demand.

In many industries, the winners have already started hustling more. Are you? Have you changed your strategies and tactics to fully reflect the downturn? Are you aggressively implementing your new plans? Do all of your employees understand the importance of having a much greater sense of urgency in implementing your plan? Are you, and your employees, embracing the needed changes, or fighting them?

Or have you resigned yourself that a market contraction is the death knell for your company?

The choice is yours!

Abundant Opportunities in the Recession of 2008 - 2009

Last week, I shared the six reasons why I believe the 2008-2009 recession will be longer and deeper than any of us hope, than the government is now publicly stating, and most economists are currently predicting.

Prophet of gloom? Hardly!

I believe that there are abundant opportunities to prosper, both financially and developmentally, during this recession. Planning how to do so must begin with a realistic assessment of the situation, hence the week-long series devoted to a situational assessment.

The challenge, for all of us, is that the actions that brought us success over the last decade are unlikely to bring us success in a radically different situation.

Financially, I believe prosperity will come to those who are involved with businesses that

1) provide goods or services that are specifically tailored to the downturn, or

2) provide other goods or services in a manner such that they are materially different than that provided by competitors.

Examples of the former would be businesses that deal with foreclosed homes, repossessed autos, defaulted loans, etc. etc.

Examples of the latter would be businesses that provide customers or clients with exceptional value. Consider, for example, the casual dining restaurant sector which is having extreme difficulties. Well, tonight I ate at an “all you can eat” salad/pasta bar that was jam packed. Literally, there was a five minute wait to be shown to your seat…on a Sunday evening, no less. For comparison sake, after dinner, I walked next door to one of the big name casual dining traditional restaurants and it had only a handful of customers. Ouch!

In the last decade, business success was much easier than it is likely to be in the next two to five years. This downturn will test the skills of all owners and managers. In a growing market, differentiation is important. In a declining market, meaningful differentiation is absolutely imperative.

Those owners and managers who can break away from past success patterns and plan and implement strategies attuned to today’s environment will do well. Perhaps not as well as in recent years, but still well.

The greatest challenge will be those whose business model is difficult to change quickly because of the nature of their industry. Executives in those industries will be severely tested.

Up Next: Over the coming week, I will be sharing specific strategies for tuning your business to win in this new environment. Tomorrow, I will address taking business from your competitors in a downturn.

The U.S. Recession Shows Signs of Becoming a Truly Global Recession

This is the final post in a six part series, running this week, on why you can expect that the downturn will be deeper and longer than currently expected by most. Over the past week, I have shared why I have come to this conclusion. Here is Reason #6.

The problems within the U.S. economy that need to be solved in order to slow the accelerating snowball and begin the return to a healthier economy are significant, in and by themselves. However, making the problems much worse is that the malaise attacking our economy has gone global.

On a daily basis, we are learning that more and more countries around the world are experiencing a recession. The economies of China, Japan and Korea have weakened. So too with countries throughout Europe. Russia’s economy has slowed. And even the economies of the oil rich countries of the Middle East are experiencing some discomfort as reduced demand and lower prices for oil occurs.

As if the U.S. economic problems were not difficult enough to fix, now the repair must play out on a world stage where consensus on any issue is always very, very challenging.

Those who say the U.S. government has more tools to use in avoiding a downturn of the magnitude of the Great Depression seemingly ignore that the U.S. does not control the world economy. We have become a country, like most, that is inextricably woven into the fabric of a global economy.

Further exacerbating the complexity of that problem is the specter of worldwide deflation…an economic force every bit as challenging as inflation…if not more so.

And even if all the economic policymakers were in agreement as to what needs to be done to strengthen the global economy, would respective political agenda’s foster consensus implementation? On a timely basis? I wish I could be more optimistic such would be the case.

So there you have it, six reasons why I believe the economic downturn will be deeper and longer than most are currently expecting. Deeper and longer than any downturn since the Great Depression. Regretfully.

I hope I am very wrong!