It's the economy, stupid

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"It’s the economy, stupid" was a phrase coined in Bill Clinton’s successful 1992 presidential campaign against George HW Bush. The message referred to the recession in the United States.

I am fortunate enough as a Business Coach & Mentor to conduct a rolling daily R&D project on the state of the economy through the eyes of a diverse range of business owners.

Here are their insights.

Trading Conditions

·       Generally good trading conditions
·       Low inflation & low interest rates advantageous
·       If you can’t make money now you never will


·       There is a talent shortage of experienced and driven mid-tier employees
·       A perceived imbalance in unfair dismissal laws has resulted in some reluctance to hire employees
·       Low wages growth has helped absorb margin pressure
·       In boom industries, such as construction, there is high real-wages growth as a result of labour supply and demand pressures
·       Businesses have an appetite for putting on contractors or outsourcing where possible

Banking & Finance

·       Contraction in lending criteria by banking industry
·       More scrutiny by banks on risk reduction in overall lending policy and increased conservatism
·       Businesses feeling restricted by tightening in lending criteria despite them feeling that they have strong security and lending profiles


·       Perceive high and ever-increasing customer expectations
·       Experiencing margin pressures
·       Getting paid the same or less for delivering more
·       Customer focus on value-added services


·       Focus on paying less for generic or compliance-based services
·       Appetite for using more specialist consultants that add value
·       Reviewing their selection of accountants and lawyers more regularly


·       With low interest rates, appetite for risk present
·       With lower investment returns on traditional investments, appetite for higher-risk higher-return investment opportunities
·       Increased focus on property investment
·       Appetite to reinvest profits into introducing new products or services that complement and align with existing business


·       Feel invisible as mainstream media focus almost exclusively focused on corporate business despite SME businesses representing more than 90% of businesses
·       Jury out on cost-versus-benefit and ROI on social media


·       Feel alone, ignored and unappreciated for their role in the economy
·       Act as unpaid tax collectors for government yet feel unsupported when tough times inevitably effect their business
·       Increased scrutiny and tighter cashflow collection around indirect taxes such as GST, Payroll Tax & Stamp Duty


·       As risk-takers, feel unrewarded by current tax structure
·       Seek reform and support for SME businesses

These are the current thoughts, feelings and observations of what I am hearing from small and medium enterprises.

I support and acknowledge them as the dreamers and heroes that drive our economy.

To start creating sustainable success in your business and life, download a copy of my eBook 'The Success Algorithm' which details my process to work less and earn more. You can get a free copy on the Giveaways page of my website. Plus some bonus videos from my Fourth Moon video series to reach your goals sooner!

All the best,

Darren K Bourke

Connect with Darren on LinkedIN here.

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