Economic Winter

Posted on February 15, 2009
Filed Under Life Lessons |

Invited by my good friend Versa Creations to share some of my personal thoughts on How to tide over an Economic Winter. Vivenne used a Farmer turned Hunter as an illustration which is quite appropriate and practical.

Personally I have gone through two major recessions in my corporate life and recalling on those experiences, I guess we did what most companies would do such as :-

Operational cost cutting.

Expand into markets that are not affected.

Be selective and continue rather than stopping all your research, marketing, advertising etc.

In the above steps it does implies the situation of changing from a farmer to a hunter in order to ride over the winter season.

One thing that stood out over the last two recessions and how we managed to pull through was this.

Tapping into your business RELATIONSHIPS!

Just for illustration, I remembered that during the recession, we received the highest market share of whatever little business by virtue of our relationship with our clients!

This brings out another important factor and that is always build your relationship from day one. It would be a bit too late and too little if you ask for help when winter strikes!

Another important factor that helped was ‘selling your expertise work force’ to regions where the economic winter was not as bad! This is better than retrenching your most valuable assets of any company. Their salaries are paid by others and at the same time you retain them within your company and wait out the winter season.

Companies that survived economic recession are those that are always in a position of readiness for such events! As the song by Rod Stewart goes, ‘The First Cut Is The Deepest’ and so will be the first time facing an economic winter! That’s where history and experience counts. I guess the motto is “Positioning”, always prepare for the worst scenario.

On hindsight, I have to admit that there was this element of 'luck' too! However it seems that those that are well planned seem to be luckier!

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Comments

11 Responses to “Economic Winter”

Kerygma Christianity on February 15th, 2009 9:21 am

Peace be unto you in the name of Jesus Christ;

We wanna inform you that on Dec 2008 ago we have published our weblog (Kerygma Christianity Weblog) at http://kerygmachristianity.blogspot.com; we recommend you to visit our weblog and take a participation in posting your articles by email to: kerygmagroup.christianityweblog@blogger.com and/or writing your comments in every published articles and/or filling our guesbook!
Thanks a lot and God bless all of you!

With love:

Rudy Haryanto
(Kerygma Group Founder)
Ed on February 15th, 2009 2:07 pm

I was locked into such a conversation on Friday night with a couple of my mentors, something along the line where we have too many bad news and too little good news about the situation. What initially was anticipated to last about 1 to 2 years, now some are projecting it to go as long as 3 to 5 years of recession and recovery.

The business relationships you suggested is certainly very important. One of my friend’s is already switching his focus to African market apart from the regular market he is in. He has already had his middle-man and clients set up and there is no reason to reject business even in third-world countries now. Every dollar and every cent is still precious business now.
Vivienne Quek on February 16th, 2009 1:21 am

Hi Bokjae

Thanks for picking up the tag.

In business relationship, these 2 questions are important:
a) Who do we know?
b) Who are we to them?
Versa Creations Blog - Build Wealth Through Smart Marketing on February 16th, 2009 1:24 am

[...] Economic Winter by bokjae [...]
bokjae on February 16th, 2009 1:40 pm

Well said vivienne, the Know Who seems so important in the world of business!
bokjae on February 16th, 2009 1:40 pm

Thanks Ed! Your friend is proactive and its a good approach in life!
bokjae on February 16th, 2009 1:41 pm

Thank-you bro. Rudy! Will sure do as you suggest and feel honoured to be invited!
Solomon on February 18th, 2009 12:10 am

Hi Bokjae,
Glad to read your post on economic winter. Your suggestion of deputing your resourceful staff on other projects -seems to be a viable and very innovative concept. I liked what vivienne said too.
Anyway, your blog is so cool. Pls. visit my blogj and I’ll cherish your comment on it. http://www.creativesolomon.blogspot.com/
Regards
Solomon
bokjae on February 18th, 2009 12:51 am

Hey solomon, thanks for dropping by! Yes visited your blog and am happy for you now that you are actively taking action in building your blog! Cheers!
Solomon on February 19th, 2009 1:58 am

Thank you Bokjae! Keep up the good spirit in your blog!
Solomon
jangbokjae lenses on life experiences in Malaysia on February 24th, 2009 2:38 pm

[...] to my recent post on Economic Winter where I was invited by Versa Creations to share my personal thoughts, I come across another [...]