I’m late to the party of this one, the post being a few weeks old.
John Robb is smart guy. Check this out. My commentary follows:
My day job consists of being part of the leadership team of a medium sized business. I learned long ago that the industry that the business operate in means very little and that you have to think of the business as an entity that has certain needs and performs certain ways when you manipulate variables. Those B-School exercises that everyone eventually tires of, pulling levers and such for results, are essentially what running a business is. There are of course soft, relational aspects of it, but the care and feeding + exercise regimen affect how it performs more than anything else.
Where I currently spend the majority of my day is a business with certain challenges that reflect the title of this post and reference heavily what Robb says in his post.
In short, due to several reasons, we have issues with what is coming in is less than what is going out. There are of course ways to alleviate this with credit and various other vehicles at the disposal of said business, but in the end, it’s the efficiency that gets you. That equation, like many other universal constants, must balance.
The economy is exactly the same. Credit vehicles are OK when used properly despite what Dave says. But, also to Dave’s credit, they are hardly, if ever, used properly.
We as a nation and as a larger, global community are is a precarious position. Seemingly on the precipice of destruction, always wondering what next black swan will come to push us over the edge.
The shift from what you know today and experience as your reality is about to occur. To survive and prosper, you need to learn how to adapt to that change and profit.
In the meantime…