Are You Really Ready for the Recession to End?
Recessions are a logical phase in every business cycle, one that often follows a period of economic exuberance. Simply put, they are a natural reflection of the market to close one cycle before starting another. Rather than fearing recessions, business owners need to actively position themselves to leverage the next logical step in the economic flow: innovation and corporate growth.
The duration of a business cycle is a reflection of your industry. For dynamic industries such as the media, the entire business cycle may last only 18 months, while for more conservative industries such as construction, it may last 15 to 20 years. Most cemetery and funeral service businesses have a cycle of approximately seven to nine years.
If a cemetery or funeral home owner has been in business for 30 years, you can almost bet he or she has modified the business at least three times over that time frame to remain in business.
That does not mean every evolution is successful. Sometimes predicted market changes never materialize, or they are trumped by larger economic issues. That is the situation we find ourselves in now. Today’s economic recession has moved most cemetery and funeral service businesses back to their business cycle starting line.
When will your recession end? Based on the duration of your business cycle, most of you can estimate a recessionary period of approximately nine to 12 months. This period of time represents a small window of opportunity for you in which you should be preparing for the next business cycle.
Recessions are periods of corporate rebirth. Though many owners flounder while seeking resolution, it’s the prudent owner who realizes recessions are part of every economic cycle and provide an opportunity to reestablish one’s business in a new competitive light.
Focus on predicting your next market demand and position your firm to reap the benefits of the next upward economic swing.
Brad Dawson is the managing director of LTV Dynamics and has more than 28 years of management consulting experience. He is a frequent lecturer to international entrepreneurial businesses and serves as a contributing writer to several national and international business and leadership magazines. He will be one of a featured speaker at the ICCFA 2009 Convention & Exposition, April 20-23 in Mandalay Bay. He can be reached at BLDawson@LTVdynamics.com.