The Recession: What’s In It For You?

General Motors, Chrysler, Air Canada and Canwest Global are “on the ropes.” They, of course, are all blaming the recession for their current situation. They won’t admit that they have been building sub-standard quality products or offering sub-standard service, sub-standard programming, over-extending and over-leveraging themselves when times were easy or possessing a “take as much out of the market while you can” attitude. No, it’s the fault of the recession. It’s much easier to point the finger squarely at something out of your control and not be accountable for your performance.

This time in our economy has been nothing more than someone pushing the “reset” button to weed out the weak, the lazy and the greedy. It’s easy to make money when everyone is flush with cash and many did. The challenge is in listening to what the market wants, what the market demands and what the market expects and give people what they want – not what business thinks they need. The companies who will survive this time in our economy will be the ones who deserve to – not the ones that have an entitlement attitude because of their tenure in history.

Last week, the Federal Office of the Superintendent of Bankruptcy reported that personal bankruptcies increased over 50% in March 2009 compared to March 2008. That’s “personal” bankruptcies. But what about business bankruptcies during the same period? Business bankruptcies have actually declined by 10% over the same period which means that when times were good in March 2008 there were more bankruptcies than there were when we are supposed to be in a recession. Business is actually doing better during this time in our economy because they are changing, adapting and responding to their customers in a positive way. For those businesses that are in trouble, natural selection and market cycles have a wonderful way of weeding them out.

Let’s not ever forget that you, as a consumer, vote with your dollars. You get to vote who stays in business and who doesn’t. You don’t vote for mediocre service and market complacency. No business is entitled to your money. Every single business should earn it. You get to vote for those businesses you want to succeed. In other words, if there’s nothing in it for you, why would you give your money freely to a business that is doing little for you?

As a consumer, you also get to choose whether or not you participate in this recession. Oh yes, you have a choice. You always have a choice. My friend Marty Park (www.martypark.com) said something so profound recently that I have been finding myself repeating it at every opportunity. He said, “The recession? I’m not participating.”

Here’s why you should make the choice right now as to whether or not you participate in the recession: what’s in it for you? No really, ask yourself what’s in it for you?

ATTITUDE ADJUSTMENT: If there is nothing in it for you, do you participate in something anyway? Of course not. So why do you think that you NEED to participate in the recession? You don’t. Plain and simple, you don’t have to if you don’t want to. The economy is resetting itself. You have no control over that. Let it go and stop worrying. It doesn’t really affect most people. It’s your “personal economy” that’s most important right now. Spend a little less and save a little more. Make business work for your money. You’re in charge. Even during the boom times, people got laid off, got downsized and got squeezed by mergers. They just dusted themselves off and went and found a new job or went back to school to upgrade their skills. You can do that now too.

You’re still buying groceries, the lights are still on and the doors to work are still open for 92% of Canadians. What really has changed? Not much. In fact, in the last year, small businesses with fewer than 20 employees created 36,800 new jobs across Canada. Why can small business create so many new jobs? Because they respond to what customers want. Small business knows that consumers vote with their dollars.

Before you spend a dime today, think about whether or not the business you’re considering spending your money with is actually earning it or not. Don’t give business “pity money” because you feel sorry for them. Make them earn it. Most businesses, fortunately, are starting to figure that out. Those who don’t ever figure it out though, will join the list at the top of this article. But that’s not your problem is it?