Thursday, September 10, 2009

Double-edged Sword Economy

We are experiencing an extraordinarily interesting economy. Much less business is going on than a couple of years ago. Prices have fallen. Companies are teetering on collapse. The government is becoming a dominant force in the business sector, actually owning businesses and controlling them to an extent. The stock market is rising as it compares itself to six months ago, instead of two years ago.

We have millions unemployed and millions taking pay cuts to stay employed. Yet, there are opportunities.

Prices have fallen, making it more attractive than ever to buy product or even businesses. Cash is king, so if you have it, you're in the driver's seat.

But the thing is--and this is what is most amazing--many companies are not taking advantage of opportunities because of perception. They are not buying that business jet at a reduced cost because it will look bad to the shareholders. They are not buying that new building for their headquarters at 45% off because it will look wasteful. They are not investing in a tournament or a sponsorship because it's a bad message to employees and shareholders, yet it is at a bargain-basement price and it is believed that it would help grow the business. If they do own sponsorships, the corporations in some cases are taking their name off so that no one knows their involvement.

It's a double-edged sword economy. The corporations and individuals that will greatly benefit will have to face up to perception issues and weather that storm. Those that avoid the perception battle, will watch the opportunities slip away.

Barry LaBov
LaBov and Beyond

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