Whichever newspaper you read, there are stories of green shoots ... and continuing gloom. No doubt some intern in a PR agency is monitoring these reports and we will soon see some self-promoting research indicating a swing in sentiment one way or another.
But enough cynicism. The news of late has been so bad that there can be little doubt that there will be some recovery at some stage. To steal a quote from Rupert Murdoch, the Chief Executive of News Corporation: "I am not an economist, and we all know that economists were created to make weather forecasters look good, but it is increasingly clear that the worst is over".
That's all good news, but growth out of recession is not always plain sailing. Indeed, growth for many small businesses can be a path fraught with danger. The correlation between growth, profit and the need for more cash is not always clear.
As the world economy improves, small to medium-sized businesses, typical clients of MSI Global Alliance members around the world, need to make sure that they avoid getting carried away with post-recession optimism and seek out the advice of their professional advisers.
In recent months, there has been clear evidence of the downturn encouraging businesses to become more critical buyers of professional services, often driven by cost factors. However, as and when things really do pick up, those same mid-sized businesses should become more critical still, but now to ensure that they are receiving the level of personal attention that they are going to need to avoid the pitfalls that lie ahead.
James Mendelssohn (jmendelssohn@msiglobal.org)
www.msiglobal.org
The correlation between growth, profit and the need for more cash is not always clear.
We all must have read green shoots of recovery. These signs are deceptive. You still never know what is going to happen next.
Posted by: find lawyer | May 27, 2009 at 06:58 AM