The economy continues to struggle in the first month of 2009 and there appears to be no end in sight. Consumers are not going to be the driving force to get the economy back on track due to the fact that savings are at an all-time low and unemployment is growing at an alarming rate. Governments around the globe are taking a leadership position and attempting to promote spending as a way out of the recession.
I have two thoughts relating to the government being the main driving force to end the recession:
Recovery will take 2 years – I have sold products to all levels of government over my selling career and government spending is not going to be a quick fix solution for any economy. The government is not like a consumer, it is extremely bureaucratic. It will take twice as long to get the economy going as compared to consumers driving us out of the recession. It will likely be late 2009 before the economy starts to see the benefits of government spending; as a result, 2009 will be a very tough year. By the end of 2009 and the start of 2010, government spending will get the global economy growing again.
Position your Company for Success – I have learned over the years through dealing with start-up companies that it is impossible to time markets; all you can do is put yourself in the position to be successful when the market starts to grow. Government spending will have a positive impact on the economy; as a result, companies need to start putting a plan in place to take advantage of this spending. Smart companies will have a plan to benefit by government spending early and for the duration of the government stimulus.
How do companies get access to the government stimulus? It starts with a vertical market strategy that identifies the industries that will get early access to this funding and evolves to strategic account planning that identifies the companies in the vertical market that are positioned to get access to the funding . It does not matter the size of your company; if you want to start growing, take the time to understand government budgets: who is getting access to the money and how can your company participate in the process. The amount of money that will be injected into the economy will be unprecedented; do not miss out on the opportunities that will be afforded!