WHEN WE KNOW BETTER, WE DO BETTER

Business Owners what are you doing to prepare for a significant economic restriction, including less sales and cash flow in your business? 

Cornerstone is trying to bring to the attention of the business community that there is a recession on the horison and it's closer than we appreciate, so be prepared.

It appears that the last 10 years of prosperity (since the 2007/2008 GFC) has created a short term memory for many Business Owners. In particular those that have started a business in the last decade, and know no difference.

A word of caution we can develop an over confidence for our future because we have been successful. This is one of the weaknesses of success, the tendency to be over confident which can creep into our psyche and decision making. We have a belief (confidence) that we can control our futures. Some of us know better, because of personal experience.

There are some obvious, and some less obvious advantages, to been prepared for a recession, including defensive and offensive strategies.

When we have defensive strategy, it serves us in two main areas, firstly, it eliminates wastage, improves productivity and makes us the best we can be with what we have - it 'optimises' our business; secondly and more obviously, it allows us to be more competitive, with other businesses in our market, so at a minimum we can survive the downturn.

A lesser understood advantage of offensive strategies during a recession, is that it can lead to growth for your business. When the business is prepared, the opportunity to take advantage of 'creative destruction' is potentially available for some businesses, in some markets. There are opportunities to grow exponentially, because you have a plan in place and not overwhelmed emotionally at the time, while everyone else is in a state of shock. Want to learn more give us a call

"A Dutch social psychologist, by the name of Geert Hofstede (born 2 October 1928), a former IBM employee, and Professor Emeritus of Organizational Anthropology and International Management at Maastricht University in the Netherlands, well known for his pioneering research on cross-cultural groups and organizations. His most notable work has been in developing cultural dimensions theory. Here he describes national cultures along six dimensions: Power Distance, Individualism, Uncertainty avoidance, Masculinity, Long Term Orientation, and Indulgence vs. restraint." quoted from Wikipedia 

These cultural dimensions are another perspective, which could be (generally speaking), influencing New Zealand's tendency to be less proactive and more reactive to decision making when it comes preparing for a recession.

"With a low score of 33 in this dimension (LONG TERM ORIENTATION), New Zealand is shown to be a normative country. People in such societies have a strong concern with establishing the absolute Truth; they are normative in their thinking. They exhibit great respect for traditions, a relatively small propensity to save for the future, and a focus on achieving quick results." Quoted from www.hofstede-insights.com - please see link below for more details

It is the last two comments that justify the point "...a relatively small propensity to save for the future, and a focus on achieving quick results." When it comes to been proactive in preparing your business for a recession, or a succession strategy, or even if your business is just stuck and not getting to the next level... then please, if you feel this is you, be armed with this knowledge, and change before you need to change and take back control.

When we know better, we do better

If you would like to learn more, Cornerstone simply want to have a conversation with you...

Speak soon,

All the best,

Emil

https://www.hofstede-insights.com/country-comparison/new-zealand,the-usa/