How to Combat Recession in the Digital Age | John McCarthy | Blogs - Expertise in Open Source Business Development

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How to Combat Recession in the Digital Age

Written by John McCarthy - Director LeadSure

Some of you who are as old as me will remember the 1970’s when the UK was in the throws of an economic recession. I know all about it, I was an engineering apprentice in Coventry one of the worst hit areas. Factories were closing on a daily basis and a third of the UK’s manufacturing base disappeared very quickly. I lost my job like so many others.

Now we are told we are in the midst of the credit crunch. It appears that those that tell us how to run our businesses, the banks have been grossly incompetent in running their own businesses to the tune of billions of dollars. This has send shock waves around the world.

Do we need a Nanny?

I wonder how much of our economic boom times over the past years have been fueled by over extending credit and ignoring simple economic rules. When you borrow money as an individual, business or even a bank you must pay it back, not borrow more to cover your losses until the whole situation gets totally out of control and thousands of people in the UK and the rest of the world lose jobs.

Spoilt Children

Looking back over the last month it now appears that Alistair Darling was telling the truth and in fact playing down the severity of the situation. I doubt that he knew how bad it really was. Instead of applauding him for trying to be honest in this difficult time his party behaved like spoilt children and did not want us to hear bad news. We are in danger in the UK of bringing back the Nanny state which for the most part solved many of our economic troubles in the 1970’s and 80’s. We need to face up to our situation and deal with it.

Recession in the Digital Age

This the first time we have faced a real downturn in the mainstream economy since the advent of the digital age. In our businesses we should now look to this technology to reduce costs and increase our market reach. IT can reduce costs inside our businesses and by examining how processes are undertaken we can reduce costs and pass this on to the consumer. I predict that the firms that do this will gain in these troubled times as consumers are looking to reduce costs.

We still Trade

Remember nobody actually stops spending they become careful and slower to purchase. I have heard it said that it is difficult to introduce new ideas to consumers in a recession, I think the opposite is true if it is coupled with genuine cost reductions and new value added services. At LeadSure we have members of our panel who have seen this economic cycle before lived to tell the tale and are here to help. Why not see what we can do for your business by asking the panel a question. Simply click the button below.

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