If you have not heard about the financial crisis in the world, you have either been on a spiritual retreat for the past five months in the mountains of India, or you have recently emerged from a deep coma. The old adage is “when America sneezes the whole world catches cold.” Although this is not as true as it once was, the fact is that what America has caught, is far more contagious than a cold. America recently announced that 2008 saw more job losses than any year since the Second World War. 2009 is predicted to be much worse for America and Europe. Although South Africa is reasonably protected from the world economic crisis, some economists predict that, in the next six months, it is going to get a lot worse before it gets better. The good news is that interest rates are predicted to drop by as much as 300 base points (3%) if not more. Petrol should cost less and the rand is predicted to hold steady between R9 and R10 to the dollar (if that can be called steady).

All these issues are - to a large degree - really out of our control. What is in our control, however, is our attitude and action during this year. If you have been following my weekly thoughts, you will understand that my view is that entrepreneurs need to become more aggressive in 2009 than ever before. This is no time to shrivel and become defensive. Research has shown that sports people who have overcome bad “spells” have done so by being consistent and focused on building themselves to their former glory. I believe that the same should be true for entrepreneurial businesses. We should become focused on the consistent “doing”. The calling of new clients, the visiting of old clients, the checking of systems and the building of systems. The humdrum of consistent action in your business (job), day in and day out, will most likely ensure you have a strong and vibrant business when times turn. And they will turn.

Interestingly, the research also shows that family-owned businesses tend to have a lower level of failure during bad times. The reason for this seems obvious. The fact that families can pull together resources during difficult times, the fact that they will look out for one another (despite age old “issues” with one another), the fact that when one is weak, the others are strong enough to carry and encourage, the fact that there are higher levels of trust, all these contribute to the increased success rate. I suppose Raizcorp is a little like that: somewhere between a family and a community.