Entering 2009 - and Getting Prepared for Brighter Economic Times

Another Year, Another Dollar (now .81US$ to a Canadian Dollar). Before looking forward to 2009, lets take a look back at 2008. Many BC tech companies had banner years this year, though we've seen record declines in the TSX. And with interest rates and housing prices decreasing and automotive layoffs in Eastern Canada, the ElectroPulse February article, "The "R" Word - and three tips on making the most of the coming year" foreshadowed a gloomy year for some.

The article suggested that companies to plan ahead - easier said than done. Virtually all experts say the time to plan for a recession is before it happens. Cultivate business with customers whose needs match your offerings. Diversify your client base to include markets that are less affected by a downturn. And stay aware of changes in the marketplace. The February article has been included below for reference. The flip side of planning for a recession is planning for the inevitable recovery. We're entering a period of real uncertainty, but like always, it will not be here forever.

For those who want to stay ahead of the curve, here are 3 tips on how to make the most of the economic recovery period.

Pursue Dormant Clients and Old Leads
Recession is the time to pull out all the stops and get any business you can, so start by tracking down clients that haven't used your services in awhile. Give them a call just to see how they're doing personally and professionally under the weight of the shifting economy. Be sure they know that you aren't simply contacting them to try to stir up business, but don't be afraid to mention at the end of the call that if they ever need anything, they should call you.

Retool your products
How would a recession affect your customers? And can you retool your products or services to meet their new needs? I recently spoke to an old colleague who works at RIM, makers of the Blackberry Storm launched in November. Any wild new features? Not really, as he explained that RIM focused on efficient and inexpensive production. With consumers tightening their belts, and with Apple's $199 iPhone entry, they designed compelling smartphones with a sub $200 pricepoint.

RIM retooled their products to match the current market, by offering features with simpler recipes - no wifi, easier to manufacture, fewer costly materials.

Planning for recovery
Retool your workers. A recession is an opportunity to snatch up highly skilled employees who are out of work or insecure about their company's future. It is also a great time for training your existing staff, with management or sales training. Now is the time when business owners ought to go to workshops on how to prepare for the recovery. But preparing for recovery while in a recession is easier said than done, as you may not see when you will recoup the investment. We're entering a period of real uncertainty, but like always, it will not be here forever. Looking forward to a fantastic 2009!

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