Traversing Economic Peaks and Valleys.
There is a global “cost of living crisis”, and unfortunately it’s hanging around. Agencies are merging, there are butcher cuts to most companies, and AI is holding a knife.
In the United States, people are hurting. The Economic Forecast GDP growth is expected to slow to around 1% in Q3 2024, with a potential pickup later in the year as inflation subsides. The Federal Reserve may cut rates. Over the ditch, the UK economy is showing signs of recovery after a technical recession in 2023.
In Australia, Interest-rates are now higher for longer, and consumer confidence is in the loo. I’m not a learned economist, it feels unfair for small to medium enterprises (70% of the Australian workforce and one third of the Australian GDP). Creative businesses built by passionate people billing mostly on their head hours, service-based industries, shrinking budgets. But be brave.
The Compadres I work with around the globe are re-engineering their businesses and transforming themselves, for one reason or another. It’s amazing to watch and to walk alongside the creative industry, creating new industrious ways.
When I started my first company, it was a production-focused branded entertainment business. We were one of the first, certainly the leaders in terms of volume, in delivering branded video content through people’s mobile telephones and a new pipe called broadband. Coca-Cola and Vodafone were our biggest clients.
But, despite knowing the route, there were many detours in business and life:
Our first baby (Betty-Rose)
The 2008 GFC
A funnel of mortgage payments
Facing all these, I swiftly changed the course of my adventure. I sold part of my business to WPP, to pay down the mortgage and buy nappies.
The bad things in people’s lives happen because of what they do on their peaks & the good things in people’s lives happen because of what they do in their valleys – peaks and valleys, Spencer Johnson.
To fight the economic crisis, hit those pesky earn-out targets, and to keep staff busy, we created the economic version of our marquee business (The Conscience Organisation), called The Happy Farm (think British Airways versus EasyJet). Forgive me, but back then, filling out an online form to have your content production project quoted and completed was an innovation. The Happy Farm outperformed The Conscience Organisation for almost three years, 8-2.
In any case, my point is that I saw the headwind and changed the course of this business adventure. If you want to find your way up a mountain, through the valleys and the peaks, Per Spencer Johnson’s book, this is where the most critical decisions are made.
- Cut for Growth: slice and Dice unnecessary expenses. It feels great.
- Don’t base your decisions on “hope”: there is no hope line item in your balance sheet. Make sure staff know the game has changed. Communicate, Communicate, and communicate.
- Don’t get caught up on your current results: focus on the bigger picture and your current trajectory.
- You do not rise to the level of your goals: you fall to the level of your systems. Everyone is motivated to succeed – so what sets winners apart from losers? Systems!!
- Your purpose, vision, and results will expand when you have the right people to expand that purpose and vision: The best way to measure your progress is by noting the amount of quality collaborations you have in your life. A-Game staff. Clients you love and who love you.
Running a business without support is like climbing Everest alone and unprepared. I have much more guidance to help navigate the peaks and valleys. Find an adventurer with the map. Success leaves clues. Reach out anytime.
