As Homer Simpson says,”Doe!” 6 Mistakes to Avoid in a Recovering Economy after Noah’s Ark

I came across this an article by Katie Morell regarding 6 Mistakes to Avoid During a Recovery.  The article offered some good advice, but it reminded me of playing golf as a teenager at Valencia Golf Course, California.  The course was famous for its lakes.  Almost every difficult hole had a large lake in it, the most troubling was a large par 3 that was surrounded by sand traps and then by a lake.  I imagined that it would have been the site that Noah saw after stepping off the ark with his 1 iron–lots of water, little green.   In the same way, this article focuses on the “Thou Shall Not…” and not “Thou Should…”

1. Marking up merchandise:  The article cautions about over-charging or even charging retail during these times.  I look at that as a fall back position.  The most important concept is whether clients understand the value you are bringing to the table.  Usually I am successful at that, but sometimes I have not conveyed that to a client.  I fault myself for that.
2. Hiring like crazy:  Jim Collins, in his book Good to Great , states that great companies build their team first, and then decided where to go with them.  This may sound like a contradiction to the Morell article, but there is a reconciliation.  Morell isn’t saying not to hire people, but do it wisely.  I know of too many businesses (restaurants in particular) that have built an unnecessary entourage of people because they will expect to need them in six months.  The problem, is that they end up laying people off in three months expending the capital in the short run that they needed.  This is usually an ego problem.  Always start with a skeleton crew.  The stress you will feel being understaffed pales by comparison to being overstaffed and stressing about who to lay-off next.  Outsourcing can bridge the gap.
3. Jumping into advertising:  This is an easy one.  Look at our article in social networking.  There has been no better time in history to getting the word out, at an insanely cheap cost.
4. Flying solo: Alliances are always a good tactic.  But, a problem that may arise is relying too much on one client or alliance.  Start with one, but immediately look for others.
5. Cutting out customer service:  Invest in your most valuable asset, the people themselves.
6. Staying heads down: Joining professional groups is a good thing, but make sure they benefit you, your employees, or your company.  Trade groups may be good in keeping up with your industry trends, but do nothing in meeting potential alliances or customers.

So, keep a positive attitude, be creative, and spend wisely.