Headlines of Interest

Here is a one week snapshot of some recent headlines from local and national media-

01/8/2009 SEATTLE P-I STAFF AND NEWS SERVICES

• Retailers report dismal December sales

01/8/2009 THE ASSOCIATED PRESS

• Wash. jobless claims set record in December

12/28/2008 PUGET SOUND BUSINESS JOURNAL

• SBA Loans Slump- Credit Options Shrink for Small Business
• Tough Budget Forces Hard Choices at UW

01/08/2009 PUGET SOUND BUSINESS JOURNAL

• Seattle hits Top 10 list for troubled real estate assets
• Alki Condo-nundrum, Biggest backlog of sales in county
• Seattle joins ranks of ‘double digit decline’ in home prices
• Microsoft Landing? Many Concerns Loom in turbulent 2009
• Slump hurts hotels

And finally…

• State hopers additional liquor sales help balance budget
• Amazon: holiday season ‘best ever’
• Seattle ties for U.S.’s most literate city

Now, there’s an interesting mix of gloom and optimism.

Those of you who know me well know that I have been pretty darn pessimistic about the state of the economy for quite some time. I have been on record as saying that based on my study of a wide variety of experts, that I believe we’ll be in tough times for a few years…out until 2012 or so. I’m also on record as saying that I hope I am 100% wrong and that we’ll be going through a more normal recession cycle with a faster recovery.

The above headlines are just a sampling of what we’ve all seen for the past six months. Economic conditions are very difficult yet I find the bottom three headlines of interest.

One, and this is a bit humorous, Washington state is opening ten new state liquor stores to bring in additional revenue. This is the first time in my memory that any government has encouraged people to drink away their concerns and solve a budget issue at the same time. State officials don’t expect the recession to affect drinking habits- they expect sales to grow! Got a budget issue? Drink more booze! Visit your state liquor store and accomplish two things- reduce the state deficit and find temporary happiness…

Next, Amazon is proving that the new way of doing business over the internet (new in that this is a new marketing and sales channel evolving in the last ten years) is a great way to capture market share and grow. Their model and execution is the envy of any other company trying to sell large volumes of many products on the net. It’s instructive in that it reconfirms the power and promise of the ‘net. This power is available for both consumer and industrial product and service companies. If you’re not leveraging this channel then you are missing the boat. Confession: I’m nowhere near where I should be in leveraging the ‘net to drive more revenue and profit to my business, but I can assure you that it is part of my strategy for 2009. I have been lax here and if you have also, then rethink what you are doing with your marketing. I’ll be revamping my website in the next few months and will keep you posted when it is done. Admittedly, it’s a bit stale and sincerely, thanks to those of you who have been honest and pointed that out! It’s just one thing out of many that I need to be doing to get better positioned on the ‘net.

Third, there’s hope in Seattle and its environs. It’s a city in a region where there is a lot of intellectual capital- people with intelligence, creativity and entrepreneurial spirit. It’s a region where the power of innovative ideas will make a real difference in maintaining economic stability and driving future growth.

One other headline I saw recently had to do with Southwest Airlines, the best run airline company in history. Southwest is looking at the current market conditions and positioning themselves to grab market share in a down economy. They see failing competitors pulling out of cities that would be well served with their model and they are planning on moving into those cities. They are looking to grow. They are not retrenching.

Amazon and Southwest, two very different companies, are moving aggressively forward and we should be doing the same. But, don’t be reckless and don’t be lazy. The 2009 New Year is just beginning. If you haven’t already, develop a well thought out strategy for how you are going to grow and prosper in tough times. If you need help and would like a complimentary one hour consultation and assessment of your business, please contact me.

© 2009 Peter E. McDowell

PERFORMA Business Development

Different View/ Different Results

pete@performabusdev.com

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