Recessions, etc
Matthew Parris had it right in yesterday’s Times. He said that we’re too busy looking at the knives and forks instead of finding the next meal. He suggests that, instead of blaming systems and the banks for the financial situation we should be prepared to work a bit harder. This comes hard to the people who have been brought up in the wealth of the 80s when you couldn’t really fail to make money. It also comes hard to those who are now striking because they don’t belive in pay cuts and would rather risk losing jobs altogether than accept that the money simply isn’t there any more. I’ve worked in both public and private sectors in my working life so I have experience of unionised “job protection” as well as the more secure position (in my view) of having to create your own income. We’ve grown a workforce in the UK that knows all of its rights and none of its responsibilities – holidays, sick pay, minimum wage – all of these need to be funded somehow.
When I started out in business I had some advice that I’ve never forgotten from a friendly and well respected competitor . His business had failed in the recession of the early 90s. His turnover had slid from just short of £1m to under half over the period of a year. He said to me, “If you can cut your overheads by £1000 a month before you absolutely have to, do it. It would have saved my business.” The figures are bigger now but the principle is the same. All employers have to think this way now – it’s no good blaming external factors on the situation we find ourselves in. We have to tighten our belts, fly the flag (well done British Airways by the way – sense at last!) and get down to some hard work.
I’m not lacking in sympathy for those who lose jobs; we’ve been through that too. It’s a huge blow without a doubt. But once you realise that your fate is only ever in your own hands, you can start to do something about it. Whether you work for yourself or for a company, or for a public sector organisation, there will always be a financial cycle and that involves fall-out. It’s not the fault of the government, past or present, it’s just the nature of economics. Once we accept this and start working together, maybe things will start to get better.
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Tags: competitor, economy, financial, fly the flag, government, lose jobs, publlic and private sector, recessions
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