5 Reasons We See Business Faring Better in 2010 Than 2009
(Ed. note: Jim Prokes is one of MIPRO Consulting’s Managing Partners.)
This deserves bluntness: 2009 wasn’t an easy year for many people. Painful decisions had to be made, jobs were lost, businesses were stagnated, and even though we managed to avoid outright panic, fear still governed us. And this is to say nothing of the personal problems many faced, as many struggled with unemployment, debt and perhaps the question of whether or not home ownership remained viable.
It’s 2010. Never before in my business career have I seen a symbolic change mean so much to people on both personal and professional levels. When 2009 ceded to 2010, for the first time ever, it was a palpable change.
Based on what I see so far in 2010, the new year kickoff momentum is carrying forward with people, both on professional and personal levels.
I’m a natural optimist. While I know we’re not out of the woods yet, I often get asked about what I see for 2010 as a business owner. I’m happy to say that I can give an answer today that I couldn’t last year: I think things are looking up. Here are five reasons why:
New year, new budget. The clients we’re talking to whose budgets have reset are saying that because of some of the macro-indicators coming out positive, they have budget this year, and no shortage of areas in which to spend it. From what we’re seeing it’s not a budget explosion, but there will be IT investment this year in strategic areas.
Pent-up project demand. The cutbacks of 2009 helped save money and bolster expense conservatism, but that doesn’t mean demand went away. Every client we meet with has a long list of initiatives they want to get underway ASAP. Naturally, the more strategic the project (Business Intelligence, moving enterprise tech to the cloud, upgrading to high-value, modern ERP platform versions), the more likey it will see executive buy-in and funding.
People are sick of being afraid. Purely anecdotally and based on subjective observation, people aren’t walking on eggshells like they were last year. 2009’s pervasive fear has given way to mere nervousness, and people can function when nervous; it’s not paralyzing, and it doesn’t lend itself to panic as easily. I pay particular attention to asking other business owners how things are going thus far, and each of them is happy to say pretty well. People and businesses are beginning to feel comfortable spending again. From our own perspective here at MIPRO, I know we are.
The headlines aren’t entirely bleak. You’d be hard pressed to find any positive headlines in 2009, but so far 2010 is offering some glimmers of hope at a mainstream media level, to wit: Fed sees recovery spreading across US, Fed’s Beige Book Says Economy Improved in 10 of 12 Districts, simply to point out a couple. Are there still bad headlines, and do we still have a lot of work to do? Absolutely. But for the first time in a long time, parts of the economy are starting to come up for air. Let’s hope they keep swimming.
The strategic positioning factor. We wrote in late 2008, at the onset of the economic crisis, about how some companies were still investing to be able to come into a recovery state with improved systems, business intelligence and strategic market positioning. While those were few and far between during 2009, so far we’ve already met with many companies about how they want to invest now to be able to reap the benefits by 3Q 2010. And, pragmatically speaking, they want to invest now while the gettin’ is good: most vendors are coming off a rough fiscal 2009, so buyers know vendors are willing to be flexible and work hard to win new business. Some of our clients have said they think the window of vendor discounting is closing, so now is a smart time to invest if you’re going to make the investment anyway.
I don’t write for this blog much, but as a business owner, I wanted to throw my thoughts out there as we break into 2010 in earnest.
What have your experiences been? Agree with me, or disagree? Love to hear your thoughts in the comments.
