As we all go about trying to make a living I am sure everyone has run into the new economy developing out of this recession. Yes, a New Economy is developing and it is a reversal to how business was done as recent as yesterday. So what will be the foundation of this New economy?
That is pretty simple to answer. You have to do something to earn money in order to spend money in the new economy. This will be the basis for how business will be done for the foreseeable future.
Previously, the battle cry for anyone doing business was..’you have to spend money to make money’. So everyone and their brother who started a business would borrow a few hundred thousand dollars to put together a business. Or, would hammered an investor’s group with a frilly presentation to get a few million dollars to start up a business. That stopped when the banks collapse last year.
So how are cash strapped business people with business ventures going to get their start ups off the ground?
This is a good question that so far the answer is boiling down to being based on business’ need to start small and grow. The business people who before use to put presentations together to present to investors to fund their huge marketing campaign that brought in customers by the millions to buy the product or service will now have to roll up their sleeves and get their hands dirty building trust with consumers one person at a time.
I can hear the millions of fair skinned cubical rats now going eeeyouoooH to this new way of doing things, and the booked learned senior managers of of the C Suite saying..No Way.
This change to going back to the streets to get a business started is a huge change from what caused the problem the economy is in now. Business people who want to start a business are going to have to go out and sell it, make it work and deliver the product or services themselves. They will no longer be able to throw a check book at it to make it happen.
The millions of college students getting their MBA in hopes of jumping to a C Suite position right off the bat while probably have to take a very long internship or mailroom job in the new economy. I know that is not what the regents of many business schools want to hear, but they too may have to go out and sell their college programs like others since going to college in the new economy may not have the ROI it use to have..especially if you apply the new economy mantra to paying for school.
Bringing it home to golf, many of the guys and gals out thinking that going to the PGA Merchandise show will draw in investors to developing their new golf widget may want to think about staying at home and saving that money to spend on going out and networking their product/service to the remaining grass roots of golf.
This is not to say that buying advertising and investing in businesses in any industry, including golf, will not be made or is not good to make. Those aspect of business will remain positive but ONLY to the businesses that get past start up.
So, how is a business going to get started when they have not earned any of the money they need to spend on staying in business? The answer to that question will be based on the business person’s ability to build trust to consumers in his/her market. Seems trust is going to play a huge part in doing business now days.
In the new economy the consumers are going to be in the same shape as the business people. Consumers are going to have to earn some money in order to spend it on your products. For the little money they have they are going to have to trust that what they spend it on will go for a quality item that meets their needs. In order to feel that is being accomplished the consumers are going to demand to know who the business person is who built or is standing behind that product before they spend their hard earned money. This is going to be a way of life for a long time so if you are not a very trustworthy individual you are going to have a very hard time surviving in business.
Building trust is going to be a part of doing business from now on both in the social and business arenas. This will be easy for those who have adapted methods of networking that work towards building high levels of trust like business golf. It will be very hard for those who hate networking or have never used it before to be successful in today’s economy. I would say the new economy mantra maybe expanded to say, Trust will have to be made in order to earn money before you spend money.
Sounds good to me, what do you think?
