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Businesses should start with a clean slate in 2012

 

Special to The Miami Herald

“Every morning in Africa, an antelope wakes up. It knows that it must outrun the fastest lion, or it will be killed. Every morning in Africa, a lion wakes up. It knows that it must run faster than the slowest antelope, or it will starve. It doesn’t matter whether you’re the lion or the antelope — when the sun comes up, you’d better be running.” African Proverb

And so the sun has set on yet another year, and what a year it’s been. How will history remember 2011? One reader recently sent me an email describing this as the most difficult year he has experienced since arriving in this country nearly 40 years ago.

“I remember the recession of the early 1980s when inflation was very high,” he explained, “the cost of consumer products rose, we had to wait in line for gasoline, but there was access to capital, and there was work to be had. It was nothing like this.”

The enduring effects of the recession will define 2011 more vividly than any other issue.

But that was then, this is now. Though many of us may face lingering difficulties from 2011, the rising of the sun on 2012 marks a new beginning for those willing to greet the new year with hope and enthusiasm and a heightened sense of expectation. Some are finding new ways to grow their businesses, some are struggling to maintain market share, while others are fighting for survival. The new light shines on a clean slate for all, and reflects the promise of a better year for those who recognize opportunities disguised as challenges, and who will work their way to new heights.

No, it will not be easy, and yes, there is definitely much to do this coming year. But there’s also much to accomplish. And it doesn’t matter if you’re self employed, run a small business or manage a division in a major corporation. The important thing moving forward is that you start the year running.

• Develop a sense of urgency.

If 2011 has taught us anything it’s that no one is immune to the negative effects of the economy. Just about every industry across the board has been affected directly or indirectly. Yet any possible impact should help us realize that we must create a sense of urgency. This is not a drill. Learn from the past and prepare for what lies ahead.

• Develop a plan.

Step 1 in plan development is understanding how good you are at rethinking your business. Rethink what? In a word, everything. Never mind that rethinking everything should always be standard operating procedure, but in an economic crisis it’s critical to your survival – not to mention your success. Develop strategies to build on your strengths and opportunities while reducing your weaknesses and threats.

• Know your comp etition.

If you think you know you competition, think again. Desperate times call for desperate measures and some of your competitors may be fighting just to keep their doors open. That makes them particularly dangerous. Part of our difficult reality in 2011 was the resulting lower margins and restricted revenue sources in industries across the board. While many are hopeful that 2012 will usher in a more robust recovery, we can expect the year will commence with the same level of volatile competition. Be prepared.

• Diversify revenue sources.

Consider that sources of revenue may remain relatively restricted in the first half of 2012. By diversifying revenue sources you help spread your base and offset the subsequent reduction in margins from an increasingly competitive market.

Spanish philosopher George Santayana wisely cautioned, “Those who do not learn from history are doomed to repeat it.” For just as surely as the sun sets in the evening, it will rise again in the morning bringing with it new challenges and new opportunities. The question is how will you greet the day now that the sun is rising on 2012?

You’d better be running.

Manny García-Tuñón is executive vice president of Lemartec, an international design-build firm headquartered in Miami.

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