What does it take to cope with a recession. I am not saying that there will be one, and over here in the UK I think our downside will be less painful than in certain other regions of the world. However my belief, and I have loads of evidence to confirm this, is that it is the attitudes and personality of the entrepreneur that determines a business’s ability to come through a recession successfully.
Some personality types just wont see it coming. Optimism is great in a boom market, when things are going really well but it can lead to a negative downside – i.e. not wishing to see the bad news.
I have also found that people with an adverse attitude to risk also struggle when working out how to handle a downturn. Whilst it is good to baton down the hatches, dont go overboard on this or you will have no way of getting going again, when things improve.
We have been workling with business owners and have atypology of entrepreneurs that gives real clues, as to what to watch out for! The list below is a clue, taking into account a lot of these style also have greast strengths.
- Opportunists tend not to see it coming and avoid it as they live in a world of positive possibility
- Creative-Brainstormers look for flexible solutions, when cost cutting may be more appropriate
- Energisers look for another project to bring some money in
- Engagers (people types) seek to build community spirit and may await consensus before acting
- Constructive Organisers may find it difficult to change direction and do something different
- Concluding Achievers are liable to decide they have to sort everything out
- Independent Drivers may retreat into their shells
- Risk Managers may choke the life out of the business
This is just a simple overview and it is useful to know what type you are to avoid downside behaviour that will most definitely hit your bottom line, now or later.
The above model is being used increasingly around the globe as a means of understanding how attitudes and personalities determine business success or failure. In times of recession this 21st Century model is becoming business critical.