Before considering any solutions to managing recession, bigger question is that whether current Indian economy is really going through recession or it’s just a negative sentiment hyped through social media. Let’s go for a reality check.
Facts: If we really look back for last five years, markets during the period 2014-19 have increased from 21k to highest 40k, which means that the markets have almost doubled in last 5 years.
Even if we look at the market after demonetization after 2016 end, market has moved from 28k to 37k in three years, which makes it 30% hike in three years. Even after GST implementation in 2017.
Market has again moved upward from 31k to 37k in two year term also, resulting 20% hike in two years. Market indices are clear indicative of GDP growth of economy. These facts clearly question the market gut feel of recession.
Reason: Major factors behind this negative sentiment is lesser free cash available for impulsive buying due to demonetization and slowdown in parallel economy, trend of which was rising continuously, whereas genuine demand has not been impacted. All said and done, if there’s still pressure on your pocket, let’s see what all could be done to create resilience and manage businesses with more vigor & energy, in so called recession.
- Budget – Cut down on your expenses : Since due to increase in online transactions, free cash available for impulsive buying has decreased, maintain a budget of all the expenses expected during the month along with keeping the funds for contingencies while cutting all the unwanted expenses.
- Prioritize – Focus on NVA’s : Prioritize your daily routine works, removing all Non Value Added activities. Create and manage follow up structures to reduce distractions to enhance productivity. Read more, travel more, spend more time on self improvement, spend quality time with family n friends.
- Invest – Training and Development : In good times, we are so pressed to produce results that we are not able to spend time and energy on skill development of team members. So while we are striving to expand our businesses, any expenditure incurred on training and development of team members, gives best short term as well as long term results.
- Consolidate – Team Building : Low business times are best for consolidation, so plan for activities like Annual review meet/ SWOT analysis meet/ Strategy meet for past activities review & future planning. At the same time, it’s always good time to hone the leadership skills of the team along with out-bound team building activities.
- Kaizen – Process Improvements : Low business/ work pressure times are best for process improvement. Challenge the facts of various processes involved, by holding group meetings, invite out of the box ideas for process improvements to be implemented through Kaizen process and other management techniques.
- Resourcefulness – Influx of Information : Reduce social media exposure as it fills up your mind with so much of unwanted information, leaving no room in your mind for any creative idea to flourish. It kills your personal as well as family time, leaving no space for rejuvenation and creativity or out of the box thinking with holistic approach to be rightly resourceful.
- Diversify – Exploring Unseen Opportunities : Consumer market trends keep on varying. If one business or business model is not working, on the other side, some other businesses must be flourishing. Explore market scenario keeping your eyes wide open and an unseen opportunity would be waiting to be knocked and explored.
- CSR – Mastermind Positive Structures : Avoid negative conversations happening around, rather choose to create and move in positive optimistic like-minded friends’ group. Indulge yourself into creative ventures or social platforms to contribute to society. CSR activities, while giving back to society for all what we have received, rebuild confidence in self as well as in business also.
- Killer deals – Investment Time : When there’s a negative sentiment prevailing in the market, there are always best deals available for any capital goods for expansion or even luxury too. So best time for big investments into property or machinery addition or any value for money deals, which are waiting to be cracked.
- Mentoring – Right Sizing : Choose to work with a mentor or business coach. In good times, every entrepreneur faces the challenge of capable human resources, whereas, during tough times, it seems to be over staffed. It’s always good to have catharsis and cross check/ review both the probabilities, plan right-sizing, plan for the shop-floor team welfare activities like small excursions/ health/ hygiene awareness/ knowledge up-gradation sessions.Remember that recession is a sentiment with a silver lining, which you can manage well with resilience by implementing above ideas. And don’t forget to create structures for all new actions taken for revival.