Can you blame the recession?

[brendannz]

is it a good idea to use the recession as an excuse for not doing well in business? Or is this just an excuse?

Will the recession end soon and things will pick up?

What do you think?

[Peek]

Just an excuse.
If you are in business and in trouble it means you did something wrong.

Your business, you are responsible!

If you have success, BTW, you are lucky, just something that came your way.

(this wisdom I borrowed from Collins' Good to Great and How the mighty fall etc)

And yes, I do have my own business. One that involves an office and staff etc.

Have a great week,

[Tanja]

If you're doing the best you can then i wouldn't call it an excuse. but if you feel you're using it as an excuse, then I guess it is to some extent?

Well, I work for a private company and when the recession started we really felt the impact, it was like a chain reaction. We had to regroup a bit and come up with other ways to stay in business.Things are picking up now, whereas many others had to close down.
What helped, I think, was our reputation and resourcefulness in finding new clients/way of doing things.But that may not always work and I think it depends on which business branch you're in?

[Peek]

Originally Posted by Tanja

If you're doing the best you can then i wouldn't call it an excuse. but if you feel you're using it as an excuse, then I guess it is to some extent?

Well, I work for a private company and when the recession started we really felt the impact, it was like a chain reaction. We had to regroup a bit and come up with other ways to stay in business.Things are picking up now, whereas many others had to close down.
What helped, I think, was our reputation and resourcefulness in finding new clients/way of doing things.But that may not always work and I think it depends on which business branch you're in?

I really love the red part of the quote!
Well put.

[Savage]

What recession?

[SnerpGoodWord]

Originally Posted by brendannz

is it a good idea to use the recession as an excuse for not doing well in business? Or is this just an excuse?

I don't know about NZ, but I know about the US.

Did it hurt business? Sure. This was a "straight unemployment" recession - a 4.1% drop in GDP and a 4% rise in unemployment. That means that productivity didn't change at all in 2008 to early 2009. That's odd because it means the 4% of the population who found themselves unemployed were EXACTLY as productive as those who remained. In other words, there was no correlation between how hard or well you worked and how likely you were to become unemployed. Geographic location and industry segment however were highly correlated to outcome - if you were a construction firm in Detroit you were most likely screwed no matter what.

After the recession ended in late 2009, the story did a 180 - unemployment stayed in the 9% range, but GDP has risen 4.3%. That means that, as a result of the recession, everyone optimized their business, and businesses now really are doing more with less - we've become much more efficient.

So I would say, as a matter of statistics, that what happened in those initial 3 to 4 quarters was pretty much luck of the draw. What has happened after that was not - of the firms that survived that far, the more inventive and efficient firms have moved to the front of the pack and less capable ones have lost out. This gets to the idea that much of business success is being sufficiently well capitalized that you're still around to take advantage of opportunity when it presents itself.

[James81]

Originally Posted by Savage

What recession?

I've asked the same question over the past couple of years. If it weren't for people constantly telling me that there is a recession and that the economic situation is bad, I wouldn't know.

[ssandra]

Can you blame the recession. Sure.

You can also blame the easter bunny if that makes you feel good


Is it useful to blame the recession? Maybe...

Does it change anything to blame the recession? Not at all.


What can you do? See where you can be at cause for your business not doing well. Are you doing the same thing over and over again and expecting different results??
When sales are going down, do you change your approach or just hope till things pick up?

[jawillie]

Isn't "recession" just a depressing word for evolvement or change? When a system isn't working, it will change. Change is not always "fun" nor is it always "easy," but it is always necessary. Maybe the businesses that are suffering haven't changed with the changing tides? Maybe the businesses that are suffereng are operating from a fossilized way of doing business? Maybe society no longer needs malls full of useless jumk and can no longer support every single store there has ever been. But, if the businesses would evolve they could continue to operate.

[Curtis2011]

Originally Posted by Peek

If you are in business and in trouble it means you did something wrong.

...

If you have success, BTW, you are lucky, just something that came your way.

This makes no sense. Why would someone be 100% responsible for their failures but 0% responsible for their successes?

Both success and failure involve some luck, but at the same time they are not dependent on chance alone. I'd say luck has an equal play in both sides.

Originally Posted by Savage

What recession?

Haven't you heard? You're supposed to be suffering right now because of the economy.

I COMMAND YOU TO START SUFFERING!!!!!!!!!!!!!

[Savage]

Originally Posted by Curtis2011

I COMMAND YOU TO START SUFFERING!!!!!!!!!!!!!

I'll add it to my list of 30-day trials.

[NDN Scholar]

This "recession" thing is still going on? When are you guys going to get your act together?

Originally Posted by Curtis2011

I'd say luck has an equal play in both sides.

We'd need an unimaginable amount of data to determine this. Until then, I think it'd be safer to say that...

*pulls a piece of paper out of a hat*

... "luck probably has a play in both sides, but it is difficult to measure its effects with any accuracy."

[blackwater]

The recession may not be hitting you personally.

But its there and its very real. The USA might hit their credit maximum soon. There is a chance of the Dollar falling very steeply, which will impact even people whoose personal businesses were prosperous, even during this recession.

Though I admire the philosophy that you are always responsible yourself. By that logic, a good American businessman would buy some Swiss Francs (CHFUSD), some oil futures, and some other commodities.

[seeker5]

This is a funny one. People assume I haven't gotten a job yet because of the recession when I fully know it's because of me. They go "ya the job search is hard because of the recession", and I'm loath to disagree with them even though I know that once I'm fully aligned with a job, I'll get one.

[Savage]

Originally Posted by blackwater

Though I admire the philosophy that you are always responsible yourself. By that logic, a good American businessman would buy some Swiss Francs (CHFUSD), some oil futures, and some other commodities.

Unfortunately all of my money is tied up in value, so I can't invest it in pieces of paper.

[Savage]

Originally Posted by seeker5

This is a funny one. People assume I haven't gotten a job yet because of the recession when I fully know it's because of me. They go "ya the job search is hard because of the recession", and I'm loath to disagree with them even though I know that once I'm fully aligned with a job, I'll get one.

I suspect you'll be aligned with hair first.

[seeker5]

Originally Posted by Savage

I suspect you'll be aligned with hair first.

When I posted my post, I had a feeling you were gonna say something about it! But whatcha mean? Considering I'll probably keep my hair shaved until I die, you think I'll never get a job? Or that I won't need to align myself fully with a job before I get one?

[Savage]

Originally Posted by seeker5

When I posted my post, I had a feeling you were gonna say something about it! But whatcha mean? Considering I'll probably keep my hair shaved until I die, you think I'll never get a job? Or that I won't need to align myself fully with a job before I get one?

I blame everything on the recession.

[blackwater]

Originally Posted by Savage

Unfortunately all of my money is tied up in value, so I can't invest it in pieces of paper.

Can you please explain what you mean by this? Or just link.

[Angela]

Originally Posted by Savage

I blame everything on the recession.

I read an article blaming the recession for obesity. Apparently, when the economy is troubled, people start eating a lot more (cheap) fast food, and the national girth expands, and in times of economic flourish, like the reagan era, waistlines are narrower.

[st33med]

Originally Posted by Angela

I read an article blaming the recession for obesity. Apparently, when the economy is troubled, people start eating a lot more (cheap) fast food, and the national girth expands, and in times of economic flourish, like the reagan era, waistlines are narrower.

I've heard also a little bit of economic ties to waistlines: The US is rich and has a surplus of food and that means that we gain weight because of all the food we can buy.

[brendannz]

Originally Posted by Angela

people start eating a lot more (cheap) fast food, and the national girth expands, and in times of economic flourish, like the reagan era, waistlines are narrower.

So once we can afford to go to those fancy restuarants we'll all be a lot slimmer?

LOL

[garentee]

Originally Posted by Angela

I read an article blaming the recession for obesity. Apparently, when the economy is troubled, people start eating a lot more (cheap) fast food, and the national girth expands, and in times of economic flourish, like the reagan era, waistlines are narrower.

People generally eat a lot of less expensive foods such as breads with little or no nutritional value.. Lot o f carbs lot of tv not much movement... The obesity rate is definitely higher in low income areas... weather the economy is in the can or not....

[garentee]

Originally Posted by st33med

I've heard also a little bit of economic ties to waistlines: The US is rich and has a surplus of food and that means that we gain weight because of all the food we can buy.

Its not necessarily that.. It is the quality of the food we eat.. Most food that is bought at the supermarket is nutritionally devoid of vitamins and minerals and enzymes...As a nation we may have plenty to eat but unless you are eating high quality foods you may actually be starving yourself.. The rub is that the poor generally cannot afford to eat high quality food....

[garentee]

Its not the recession.. its education and the system that is set up to benefit the wealthy...Once one gets a foot up out of debt etc it gets easier...Knowledge is power....If it is harnessed correctly....

[James81]

Originally Posted by garentee

People generally eat a lot of less expensive foods such as breads with little or no nutritional value.. Lot o f carbs lot of tv not much movement... The obesity rate is definitely higher in low income areas... weather the economy is in the can or not....

Yeah, I've definitely noticed that in order to eat healthier, you're going to have to value your health enough to spend a bit more for your food.

"Cheap" foods tend to be less healthy for you. When money was tight for me, I found that I was eating a lot of pasta and stuff from boxes.

The way to counteract that price jump is to buy your healthier foods in bulk and freeze/can it. Or grow your own produce. But you can see how that might not be feasible to peeps who don't have a lot of money.

[Curtis2011]

Originally Posted by James81

Yeah, I've definitely noticed that in order to eat healthier, you're going to have to value your health enough to spend a bit more for your food.

"Cheap" foods tend to be less healthy for you. When money was tight for me, I found that I was eating a lot of pasta and stuff from boxes.

The way to counteract that price jump is to buy your healthier foods in bulk and freeze/can it. Or grow your own produce. But you can see how that might not be feasible to peeps who don't have a lot of money.

Well eating fast food is often some of the most expensive food there is if you break it down by cost-per-meal or cost-per ounce of food, or by anything really.

We think it is cheap to buy a fast food meal for $6 or $7, but really if you buy groceries yourself, you will end up only paying maybe $2 to $3 for a single meal when you buy in bulk. Of course it depends how much you eat, but buying in bulk at a supermarket is pretty much always cheaper than buying single meals of fast food.

And if you were to eat something very cheap like a peanut butter sandwich for a meal, then you can get a meal for like $0.25 because a loaf of bread and a jar of peanut butter are dirt cheap, and still probably a lot better for you than a greasy cheeseburger.

But yes, when comparing bulk healthy food to bulk unhealthy food, the healthier stuff is usually a bit more expensive. It's probably still cheaper per-meal than fast food though, and definitely cheaper than eating at a restaurant.

[garentee]

Originally Posted by James81

.

The way to counteract that price jump is to buy your healthier foods in bulk and freeze/can it. Or grow your own produce. But you can see how that might not be feasible to peeps who don't have a lot of money.

My point exactly.. add into the mix the lack of education about food.. We as a nation are extremely ignorant about where our food comes from... and it is exactly why we have the food distribution system we have...

[seeker5]

A lot of people tend to eat more/gain weight when they feel insecure and fearful and try to protect themselves and so they try to protect themselves subconsciously by gaining weight. So, in a recession when more people are fearful/insecure, it make sense that people on average gain weight.

[NDN Scholar]

Originally Posted by Curtis2011

Well eating fast food is often some of the most expensive food there is if you break it down by cost-per-meal or cost-per ounce of food, or by anything really.

We think it is cheap to buy a fast food meal for $6 or $7, but really if you buy groceries yourself, you will end up only paying maybe $2 to $3 for a single meal when you buy in bulk. Of course it depends how much you eat, but buying in bulk at a supermarket is pretty much always cheaper than buying single meals of fast food.

And if you were to eat something very cheap like a peanut butter sandwich for a meal, then you can get a meal for like $0.25 because a loaf of bread and a jar of peanut butter are dirt cheap, and still probably a lot better for you than a greasy cheeseburger.

But yes, when comparing bulk healthy food to bulk unhealthy food, the healthier stuff is usually a bit more expensive. It's probably still cheaper per-meal than fast food though, and definitely cheaper than eating at a restaurant.

What about the cost of labour, though? That's probably another reason why many people would opt for fast food on many occasions: they simply cannot be bothered to cook a meal themselves. It's tedious, man! Especially when I have more important things to do, like studying.

Of course, your peanut butter sammich example probably wouldn't apply to this theory, but I think it still has some clout.