Survive the Recession

There’s lots of research and talk out there on the psychology of recession. Some interesting takes:

1. Some sociologists argue that there’s evidence that a recession can increase ‘happiness’.  Profs Mel Bartley and Andrew Oswald talk on Radio 4’s Thinking Allowed (the listen-again feature will be available for some time - listen in at around the 11mins point).  The general idea is that if there is very public humbling of the very rich, the overall society may be happier as a result. Hmm.
2. The Economic & Social Research Council (ESRC) ran a public seminar on the subject of ‘Recession: Health & Happiness’.  Speakers included Mel Bartley (see 1. above). Anyone catch the meeting and can give me some comments?
3. Irish economist Gerard O’Neill looks at some of the research into the Psychology of Recession and Recovery and makes some very interesting points - not least that whilst the onset of Recession is a macro event, Recovery is a whole series of micro-events as consumers, businesses, banks etc act upon their own versions of increased confidence:
   Psychology Of Recession And Recovery March 2009

   View more presentations from Amárach Research. (tags: ireland research)
4. Another economist berating all the negativity in the press as the very driver of recession in people’s minds is Glen Hodgson of the Conference Board of Canada
5. And from my friends at Shirlaws, business-owners and decision-makers should Thrive rather than just Survive a recession.

Think I’ll gather together some  snippets on the psychology of the recession for a post later.  Meantime, here are some recession-surviving gems I came across recently:

1. Marketo thinks that only the paranoid survive a recession.  Links to a good roundup of recession tips for B2B
2. Survive the Recession: Live like a Mexican - being married to a Mexican, can’t but help include this.
3. Kurt Salmon Associates believe they know the secret to retail success in a recession.
4. onrec.com says parents need more flexible working arrangements to survive the recession
5. The Evening Star says Ipswich can survive the recession.  Well, that’s a relief.
6. Building asks if sustainability can survive the recession.  It’s a survey, folks.  Let’s hope there’s an answer.
7. The New York Observer says “Gays Love a Depression”.  The story’s comments are not for the feint-hearted…

Must depression lead to depression?

An old acquaintance popped the question “How’s business?”  He’d never asked this before.  He’d never even shown any interest in my businesses.  Just for a second, I considered answering, “Oh, it’s terrible.  I had to sell the house.  And as for my staff, it’s just too bad.”

Instead I told the truth: that my IT company has just had its best quarter (and best month) ever, and now I’m getting going on the strategy and marketing consultancy, that’s looking very promising too.

So what answer was my friend expecting - or hoping for?  Part of me feels that traditional English reserve demands the “fine, considering!” response from anyone whatever the circumstances.  Or was he influenced by the outpouring of misery in the media - mainstream and new - into requiring his own personal examples of recession troubles?

I don’t really know the answer, and I’m not convinced a trained psychologist could help either.   I do know that evidence of recession is everywhere - the toothless gaps on the high street are already becoming a cliché.  But this is the first big recession in this new age of pervasive group-think.  The thought occurred to me that SurviveTheRecession.co.uk might be part of it.  No.  I’ll keep positive and talk about surviving and flourishing.

As I thought about my friend’s question, I started to see examples of the accepting-recession pysche everywhere:

• retail staff slacking and assuming their bosses would blame the recession
• public sector workers gleefully increasing their sickies
• ditto private sector
• teachers all-too-easily allowing their schools to close - blaming health-and-safety in the snow
• wild price-cutting in stores (not sure that will boost confidence)
• cinemas full to bursting (at least here in Oxford)

In business there’s a general nervousness.  For good reason if the behaviour of the banks in anything to go by.  Our various advisors are telling us to delay payments as long as possible.  Sounds like good business practice - but our customers get the same advice.  Result: everyone’s cashflow is put under extreme pressure.

I’m interested in the ways this psychosis (is that what it is?) will affect behaviours long term - in business, in society.  In keeping with my survival mission,  I’ll look out for positive effects on the psyche.

• will there be a retreat to safety as fear is expressed?  Big brands succeeding?
• signs of much more helpful service staff eager to help their businesses succeed (or just to keep their jobs)?

I must go back to speak to my friend to ask what answers to the “how’s business” question he’s received.

More anon.

1. thisismoney.co.uk has a round-up of recession survival tips for individuals
2. Real Business has ten tips to improve networking.  A useful reminder that the key to survival is tip 10 that people do business  with those that they like, trust and respect
3. Are you a web designer?  Jeffrey Zeldman has a really useful guide to surviving the recession: do good work, charge a fair price, lower your overhead, and be sure you are communicating with your client.  Workd for any business, so I’ve linked it here
4. Forbes in the US has some hints on survival for entrepreneurs. Includes tips on how to deal with ‘bad’ customers
5. Sharecast reports on software groups such as Sopheon and Autonomy saying they are benefitting from the recession as clients rely on IT to manage costs.  Worthy of a fuller report I think…
6. More IT: According to Zycko, nche suppliers of data storage equipment are doing really well in the recession.  Thinking cap on for one of my businesses
7. One council has introduced FREE PARKING on certain days to lure shoppers into the town.  Lobby your own council if this will work for you.

Even the PR industry has decided to get some PR out on how to keep itself in business during a recession.

Downturn worries to tackle in PR Success Monthly’s new newsletter include:

• newspapers getting thinner - less room for PR targets
• luck - solution: get lucky (well at least be prepared)
• scepticism - take time to win over the PR sceptics

Read the whole of their first newsletter here.

1. Bytestart has some useful links to resources to help small businesses survive the recession (quick -  includes a link to get the Quickbooks accounting software FREE of charge but only until Jan 22!!)
2. According to the Institue of Customer Service, the recession may improve customer service in the UK - even providing some good news stories for the banking sector
3. The FT says 1 in 10 UK Independent Financial Advisers are set to fail in the recession
4. In a sad indictment of the state of the economy (and more), loan sharks are forcing vulnerable women into having sex with them to pay off their debts in Birmingham
5. The Chartered Management Institute is calling on Government to tackle the recession by offering tax relief to businesses who provide training opportunities for staff
6. The Market Oracle makes some predictions about the long-term outcome of the recession.  Hmm. Discuss.
7. noank6.com advises using debt factoring to weather the recession.  Well we’ve been using it successfully (and selectively) for years … though not with the company he links to in the post.