Keeping spirits up, maintaining a sense of proportion and holding panic at bay can be a tough ask when something called a global cash crisis hits the fan, writes Shirley Tart.
And as business people at all levels get a sudden dose of unpleasant reality, those running small outfits on their own are especially vulnerable.
Even operating alone can be an emotional disadvantage, with the added anxieties of survival for a business which might have been your dream come true when you got it up and running.
And while the economic situation has to be taken seriously and some will indeed unceremoniously meet the wall, without a doubt, we can talk ourselves into a downturn by being so negative that everything starts to feel hopeless and we become more and more helpless.
While not ignoring obvious warnings, confidence and resilience are vital along with the expertise and successes which got little entrepreneurs on the ladder in the first place.
But this is also where a helping hand and encouraging word can make all the difference. Like a lot of people, Shropshire-based business adviser Rosie Beswick remembers the last significant recession very well in the late 1980s and early 1990s. But before that, she says: “My first house mortgage interest rate was 17.5 per cent thanks to the crash at the end of the 1970s – an eye opener in itself. We never got close to that in the 1990s!”
But at the beginning of the 90s, Rosie had a sharp personal lesson which has not only stood her in good stead but has helped her pass on confidence to others.
She says: “We had a gastro pub and had a lot of corporate clients when times got tough. But you have to re-invent yourself, it was all hugely challenging but we survived. Then by 1995, things were back on course, big-style.”
Interestingly, Rosie runs Rosie Consulting and Design which provides practical solutions to maximise and rationalise company potential. And particularly to help small businesses empower themselves. In such a jittery climate, how do you do that?
“We are being bombarded with negativity but no one is telling us how to be positive through this, not everyone became bankrupt in the last big recession or lost their job, that will be the same this time. There will still be the marketplace, it’s not the end of all things, just another type of industrial revolution as everything restructures.
“We’re starting to see ‘what you must do’ articles such as not slashing marketing budgets, but we are not seeing ‘how to’ or how to achieve this with no cash.
“Telling people what they must do without hints at how to or showing it is possible even for the little businesses, is no better than scaremongering. Businesses do not want to spend cash, or very little, so they need self help or low-cost sensible help,” Rosie says.
Those devastated by redundancy or company collapse, understandably see little consolation. But in other cases where survival is possible, being leaner, tougher, maybe even meaner, may be necessary. A steady head without over-reacting and a good dose of optimism, are often invaluable, Rosie believes.
She also heads up the county’s Women’s Network with Style groups which meet regularly and do indeed form an excellent networking system for what are often those one-woman, entrepreneurial outfits.
Rosie, who is based at Westbury, near Shrewsbury, says: “I help businesses to help themselves. To try and make them realise they must keep up with their customers, where they are and how their needs might change when times are difficult. You must make sure your customers have confidence in you. however big or small you are. And it also means being positive – we have seen similar situations before and survived them. Of course it doesn’t always work, but mostly there are things we can do to help ourselves.”
And while the temptation might be to pull up the drawbridge to ride the storm, Rosie believes marketing is critical.
“You have to stay in the public eye. Like Marks & Spencer or Virgin for instance. They know that as soon as they stop ad-vertising, they are dead! You simply have to promote yourself.”
A tough call then. But calm advice born of experience is generally a whole lot better than knee jerk or panic. And especially for one-person businesses, looking to those who have been there, done it and can at least support during the tough times, helps make life a bit easier as well.
Rosie also reckons that these difficult times also prove a turning point for some.
“If you are made redundant for instance, that may be the moment to change direction and try a one-man business. And any sort of networking gives you a boost, helps with confidence, you meet people in the same situation, maybe make new clients and can learn from each other.”
Rosie was not impressed when Governor of the Bank of England Mervyn King followed swiftly by the Prime Minister, both talked gloomily of being in a recession.
“Hear that and Joe Bloggs then panics, gets depressed and everything stops if we’re not careful.”
So the message is, know your stuff, keep an eye on the ball and change when you need to.
But most of all, if there is so much as a bright spot on the horizon, then cheer up!
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For futher information contact info@rosieconsulting.com or visit www.rosieconsulting.com
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And don’t miss our latest “Beat The Credit Crunch” page, packed with ideas, offers, and advice, in Saturday’s Shropshire Star
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