Changing the Mindset
A lot of economic indicators, including the stock market, GDP measurements and some consumer confidence polls, are telling us that the economy is beginning to turn around. With that said, you can’t overlook the fact that the unemployment rate, even though we know it is a lagging indicator, is still high. Some are even looking at some pretty strange non-traditional indicators to help determine where the economy stands; 19% more homes grew their own vegetables in 2009 versus 2008, liposuction procedures were down 19% compared to last year and the dry cleaning industry has taken a hit with people wearing clothes longer in order to cut costs. I know it sounds odd, but those numbers say a lot about what Americans are really thinking.
The dismal jobs report issued on October 2, 2009 had a lot of implications. First, the official unemployment number at 9.8% is getting even closer to 10%. When we actually reach 10%, it will be like when the Dow dropped below 10,000 and kept falling. Second, the “real” unemployment number is even higher, more like 17%, when you include those who have depleted their benefits and have dropped off the screen. Finally, there are many self-employed sole proprietors with their own businesses who are struggling but do not qualify for unemployment insurance, so those numbers are not included in the statistics. Taking all of this into consideration, some estimates then put under-employment and unemployment at close to a staggering 24%.
But, if you own or manage a business, you shouldn’t ignore the other signs that tell us that there is actually room to grow in today’s economy. Instead of focusing on surviving, we’re going to have to get back into some risk-taking. My partner, Mary Adams, and I have a book coming out in 2010 entitled Intangible Capital: Putting Knowledge to Work in the 21st Century Organization. We believe that there are incredible opportunities for American business today. Challenges around energy use, sustainability, health care, transportation and education will create opportunities in almost every industry. In order to take advantage of these opportunities, business owners need to start thinking today about how their business can leverage these opportunities in the future.
