2010 must surely be the toughest year to call since Bob Lefroy started Business Money.
I think we all look forward to the economic session at the ABFA Conference today for an informed glimpse into the future.
A number of people I spoke to yesterday at the ABFA Welcome Reception, sponsored by Vision Critical, predicted that next year will see a continuation of the refinancing and turnaround focus we have witnessed throughout 2009. Asset Based Lenders say that they are receiving actual or anecdotal evidence from corporate advisers of percolating trickles of transactional activity.
As a conference theme, ‘Back to Basics’ speaks of a solid platform and reminds us that we can’t be complacent. Stephen Wells of De Vere & Co added the caveat that we may not so much be at the top of the V but at the mid point of the W. Certainly, the unprecedented shock of the past two years should theoretically lead to a more balanced, less risky pathway to growth – one in which the short-term returns may be lower, but the long-term rewards for management success will be a lot more sustainable and secure.
Mat Heritage of Vision Critical was rather more bullish and feels that the conference theme should be ‘Opportunity Knocks’. Hughie Green aside, tough times can open up opportunities.
Recessions upset the status quo: Often both gains and losses can be more pronounced than usual. Recession can be the optimum time to overtake competitors. Successful athletes often choose times of maximum stress to mount attacks, increasing their pace on severe inclines. In a similar vein, proactive marketing includes both the sensing of the existence of the opportunity (a tough hill and fatigued opponents) and an aggressive response (possessing the necessary strength or resource) to the opportunity.
At this time, clients also put much more thought into their choices – which means they may be unusually open to a financial marketer’s messages. In a more collaborative, less transactional world as we have right now, closer relationships with customers, suppliers, employees and shareholders are paramount.
Downturns have the tendency to greatly magnify benefits and accelerate rewards. Invest in the right technology and you can increase process efficiency, drive down operational cost and gain early warning against risk at a time when you need to most. Invest in marketing and you will gain a greater share of voice during ‘quieter’ times with sustainable benefits and the opportunity to position your organisation ready for the the upstroke of the W.
Opportunity knocks? I believe so.
