We’ve all been through a tough time financially, but some of the most successful businesses in the world use economic downturns as a chance to start growing. They are the hunters who use the opportunity to grow market share as their competitors cut back on advertising and slash budgets that have direct impacts on their customers.
Andrew Griffiths, author of the book “Bulletproof Your Business Now” says avoiding the temptation to panic is the first thing to remember when the going gets tough. Often that panic comes from companies that have no visibility of the key metrics driving their business. Do you really understand how much it costs to run your business? If you took a 15 percent cut in sales, what impact would it really have on your bottom line?
Brian Walker agrees that information is key. He helped many retail businesses cope with the global economic downturn and says it’s important to ensure that your business is fit enough to cope with a crisis. That means you need to ensure that there’s no fat in the fundamental aspects of your business.
Greg Joffe from the Nous Group says businesses that aren’t fit enough to handle a downturn are the ones that panic by cutting costs in a way that will only make matters worse — for example, reducing the standard of service resulting in increased customer churn.
So, it’s a simple tip — make sure your business is fit, then you can cope with the highs and lows.
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Powell’s negative tone talks down markets. RBNZ talks negative rates.
Powell says it as he sees it, says NAB’s Gavin Friend, but his dovish tone has hit markets today. Later, jobs numbers for Australia and the US.
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Markets still at odds with RBA and ECB. Who’s right?
The RBA doesn’t expect to raise rates this year says Ivan Colhoun. They’re in a similar position to the ECB says Rodrigo Catril, even though inflation is clearly on the march.
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Softer data, harder RBA
Significant falls in PMIs shows major economies are slowing. NAB’s Rodrigo Catril says markets are taking this as a sign of possible easing in central bank hikes and a fall in inflation, but, he says, as long as supply-side issues remain there’s no guarantee inflation will fall. Meanwhile the RBA predicts faster hikes from the RBA – listen in to find out why.
