Sunday, January 20, 2008
Great news - Recession is coming!
Have you heard the great news? Economists are predicting a recession!
There are two cultures within the larger entrepreneurial culture, one driven by the top-line and the other driven by the bottom-line.
Bottom-line entrepreneurs and small business owners think, eat, and breathe to keep that bottom-line black. It is their belief that every action they make must somehow protect bottom-line profits. Any hint the bottom-line will be reduced or turn red will strike fear into the bottom-line entrepreneur. They will quickly circle their wagons and wait for the recession’s attack to be over.
Top-line entrepreneurs have their focus on the top of the balance sheet -- the income. To these entrepreneurs and small business owners a recession is what Charles Dickens would call, “the best of times”. Top-line entrepreneurs will saddle their horses and seek out the encircled covered wagons.
Top-line entrepreneurs know exactly what I’m talking about, but I've lost the bottom-line entrepreneurs, including those bottom-line entrepreneurs that incorrectly think they're focused on the top-line.
Here's how the recession cycle work:
Have you heard the great news? Economists are predicting a recession!There are two cultures within the larger entrepreneurial culture, one driven by the top-line and the other driven by the bottom-line.
Bottom-line entrepreneurs and small business owners think, eat, and breathe to keep that bottom-line black. It is their belief that every action they make must somehow protect bottom-line profits. Any hint the bottom-line will be reduced or turn red will strike fear into the bottom-line entrepreneur. They will quickly circle their wagons and wait for the recession’s attack to be over.
Top-line entrepreneurs have their focus on the top of the balance sheet -- the income. To these entrepreneurs and small business owners a recession is what Charles Dickens would call, “the best of times”. Top-line entrepreneurs will saddle their horses and seek out the encircled covered wagons.
Top-line entrepreneurs know exactly what I’m talking about, but I've lost the bottom-line entrepreneurs, including those bottom-line entrepreneurs that incorrectly think they're focused on the top-line.
Here's how the recession cycle work:
- Recession sets in.
Bottom-line entrepreneurs cut expenses.
Top-line entrepreneurs are oblivious to recession. - Recession gets worse.
Bottom-line entrepreneurs cut all non-essential programs.
Top-line entrepreneurs seek strategies to increase revenue. - Business-to-business companies lower prices.
Bottom-line entrepreneurs appreciate the savings but spend less.
Top-line entrepreneurs appreciate the savings and may stock up. - Recession continues.
Without marketing bottom-line entrepreneurs continue to see sales fall validating their position that the economy is bad.
Top-line entrepreneurs smell opportunity to steal business from the non-marketing competition. - Economy improves.
Bottom-line entrepreneur feels there may be hope, but elects to continue a self-defense posture.
Top-line entrepreneurs use of the negativity of the bottom-line entrepreneur to continue to steal market share. - Economy stumbles again.
Bottom-line entrepreneur is grateful he did not increase spending.
Top-line entrepreneur is grateful bottom-line entrepreneur did not increase spending as top-line entrepreneur continues to steal his market share. - Recession ends.
Bottom line entrepreneurs now work for top-line entrepreneurs
Bottom line entrepreneurs now work for top-line entrepreneurs
Entrepreneurs are like diners at a local lunch counter. They admire the pie and want a big piece. During a healthy economy the pie is huge. During a weak economy a smaller pie is in the desert case. It takes a bigger piece of pie to satisfy your hunger.
Bottom-line entrepreneurs focus on the smaller pie. Top-line entrepreneurs plot ways to get a bigger piece.
How hungry are you?
Labels: Business
¶ 1/20/2008
