idealpeople blog

This is may be a little off-topic, although with the fear spreading throughout the recruitment industry as to the effect that the problems with the worldwide economy will have on hiring, perhaps it’s not….

Thankfully for us, we happen to know a guy who survived the last downturn. So what was the secret of his success? Over to our one and only Michael Wright…

I have lived through, and survived the last *economic downturn/recession/negative growth/crash/ or whatever word/s you wish to apply. As a tech sector recruiting veteran - I survived the dot com bust but the company I worked for almost didn’t. In fact, they had to call in outstanding debts fast running into many millions, sometimes calling up branches of firms that had already closed down, and companies who had already gone to the graveyard. Eek.

I went and founded a tech staffing company in 2001. And you know what? It’s worked. We survived, thrived, and now, seven years on… - we rock.

How? Mostly it was pure luck and fortune

Some of it was skill. Some of it was about knowing the right people. Much of it was because I had always focussed on hiring great people.

What I definitely didn’t have (at the time) was a well-developed, well-planned recession proofing strategy…. And I should have.

So, dateline 2008 and things are looking pretty troubled from where I am sitting here in the UK. Worse still, back in 2000 it didn’t really surprise the world when some ludicrous dot come business models did a belly flop - but a US Investment Bank almost hitting the wall…?

Northern Rock in the UK….

EEEEK!

This time, we’ve thought about it a bit harder

Some of these ideas emerged from long talks we had as a team - in every monthly strategy meeting, some are just off the top of my head. All will work.

Note this list is not complete. There are a hundred things you can do before a downturn, but only a couple when you are in a downturn J

How to make your business recession proof

Do - diversify so you are not wholly reliant (or ‘over-reliant) on just one customer, one region or just one vertical market.

Don’t - follow trendy business models just because they are hot and experiencing rapid growth unless they are readily turned into revenue.

Do remember that revenue is vanity, but profit is king.

Growth for growth’s sake, a winning business does not make.

Do take a long hard look at the under-performers in your business you could afford to ignore when the good times rolled.

Do have stringent credit control processes and always pay yourself first.

Do stop talking about “it”* with clients, suppliers, contacts, colleagues. You will prolong the agony by complaining and ‘emit’ “neg vibes” which only makes things worse.

Do always plan for recession proofing - especially when times are going great.

Don’t be afraid to grab opportunities especially those that only emerge as a consequence of a downturn. M&A folks just love downturns - why can’t you?

How to make your career recession proof?

Do utilise/maximise all resources available to you, and never underestimate the value created by interaction with your network, on Linkedin especially.

Do use business and even social networks to identify recruiters who specialise in your market sector. Do go talk to them - but don’t always expect them to have something for you.

Do ask about company financing at interviews with prospective employers. Venture Capital backed and ‘Angel’ funded businesses are often the most at risk, but remember nowhere you work in the knowledge economy is truly ’safe’.

Do keep a record of all the Recruiters, Staffers, Headhunters and HR folk who tapped you up about a cool job once upon a time when you weren’t looking.

Do always expect to be made redundant or fired in a downturn. A pessimistic outlook means you won’t ever be shocked and also allows for optimistic preparation J

Make sure your skills haven’t dated - and if they have - now is the time to invest in (or ask for) training, or self study.

Finally - don’t panic. The world doesn’t end in a downturn. It just sometimes feels like it. Economies run in Cycles, and where there are downs - there will always be ups.

OR

CREATE MULTIPLE INCOME STREAMS?

Being a careful guardian of one steady/secure income stream beats having several unsteady/unreliable ones.

The bravest and most fun way I found to attempt multiple stream income (OK so it hasn’t worked…yet) is to set up a company with 2 other talented people you know, get an idea together and start a company that you just work on for fun, for free and in your spare time. Maybe one day I’ll be able to tell you all about that one….

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