Chage has brough inbalance, we must find a way to balance it again or create a new balance

With the onset of The Great Depression of 2009, we are constantly hearing a lot about change but not nearly enough about balance. Whenever there is change, it brings an imbalance since the change affects different people, different departments and different customers in ways that are not equal. The scramble to balance the system again, or at least to find a new balance, is extremely important.

One example comes in our workforce where millions have now lost their jobs while others are still working. The imbalance in pay that ranges from unemployment compensation to the same old salary is huge. Many companies are trying to stabilize the system through furloughs and pay cuts to rebalance the pay structure and help people keep their jobs. Other companies are eliminating bonuses which has the effect of eliminating a source of incentives too. Some companies are doing surgical layoffs to raise the quality of the staff. With this approach, each worker is evaluated for performance and the lowest performers lose their jobs.

Another balancing act that is critical is that between revenue and expenses. As revenue has fallen in most businesses, there must be a rebalance on the expense side too. Every expense line is part of the rebalancing and some must be renegotiated while others must be eliminated. Expenses you could not live without a year ago now have a good chance of not surviving the new balancing process.

The new balance needed will extend beyond your business and extend into your personal life as well. Personal finances will need a new balance point. Even your other habits will find a new balance as we redefine ourselves for the “new normal” being established. As you go through this process, be aware that, as a store owner, your customers are also doing the same thing in their personal lives.

Your business will be affected in many ways that you may predict and others that will only become clear in the rearview mirror. For example, many vacations are being cancelled or curtailed. Will people buy less resort wear? Will they shop more with you because they are not shopping while on vacation? Will they shop less because they are not preparing to go on vacation? The responses will vary but the questions must be asked.

The new balance will make our old rules of thumb into myths. The faster you can find a new balance, establish new rules and move forward, the more successful you will be.