We're all doomed Captain Mainwaring, doomed

It’s too easy for businesses to fall readily into negative thinking during times of austerity. Business guru David Watkins illustrates this and offers some savvy tips …

At the moment, you can’t pick up a newspaper, listen to the radio or watch TV without being subjected to a plethora of doom and gloom merchants. ‘Experts’ wheeled out to pontificate about the end of UK civilisation as we know it – thanks to the rise in VAT and cuts in public spending (and that doesn’t even include the World Cup fiasco)

Listening to these experts reminds me of the story of the small-time American farmer who, to supplement his meagre income, had started to sell fresh fruit from a roadside stall.

Because his prices were low (no middle-man), his customer-care skills second to none (the personal approach) and his fruit the highest quality (straight off the tree), his business boomed. In fact, people would divert off the main highway just to call and buy his fruit.

Before long, he was so busy he decided to expand and so opened more stalls and started to advertise. Consequently, he never had time to read newspapers, listen to radio or watch TV.

Then one day, he was paid a visit by his nephew who was a business consultant working in the City. The nephew was horrified at the way his Uncle was running the business. ‘Don’t you know we’re in the middle of recession?’ he said, adding, ‘there’s only one course of action open to you: Stock your stalls with cheaper fruit, raise your prices and stop advertising’

Concerned by what he was hearing, the old farmer took his nephew’s advice. He replaced the quality fruit with inferior but cheaper stock, raised his prices and stopped all advertising. Within a very short period of time, business started to slump. His profit turned to loss and eventually the business went bankrupt.

Reflecting on his current state of affairs, the old farmer turned to his wife and said, ‘you know, my nephew was right. I must have been crazy to think I could succeed in a recession.’

Many businesses adopt the ‘old farmer’ way of thinking. Influenced by the doom and gloom merchants, they go into panic mode. Prices are slashed, profits are ignored, and less sales calls are made because ‘the customer can’t afford it’.

In the current economic climate many businesses are doing very well – and not just the accountants and insolvency practices. Meadowhall isn’t boarded up, airports are not deserted and Morrison’s are not having a closing down sale. Life continues.

Mixing with negative people, simply skimming the headlines (without reading the full story) and cocooning yourself in your office or shop, you soon become a victim of negative thinking.

Here are eight tips to protect yourself: