A Prescription For the New Economy 1

A Prescription For the New Economy

By now, positive concepts have been extensively every day about the recession of 2008, nearly just as the analysis of a sickness. One diagnosis of restoration is that we are moving into a brand new economic system as opposed to returning to what as soon as it became. We are recommended via the doctors (the so-called experts and the enterprise media) that to keep away from coming down with another case of the economic flu in the near future; we need to be inoculated with a healthful dose of innovation earlier than venturing too far out into this new monetary truth. But what sort of innovation will increase our business immune machine sufficiently in a brand new economy wherein viral insects like prices, rules, and opposition seem to be mutating rapidly?

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Well, first, I can tell you that it is not the kind of innovation that has made the time period little greater than a buzzword for many of us. In this newsletter, we can explore a commonplace feel procedure for knowing exactly what kind of innovation is prescribed for this new economic system and some validated strategies to get it achieved.

In the past, the time period innovation has most typically described new services or products that create new markets or leverage untapped possibilities in present markets. The innovation that had to thrive in the new economic system will, in all likelihood, pass well past new services to involve adjustments to your entire enterprise version, which will be effective.

In a current version of Trends Magazine, an editorial featured a listing of questions that every commercial enterprise must ask about their enterprise model, a good way to ensure they achieve this new economy. While discussing that concept with a colleague, we prepared a comparable listing for small and medium-sized wooden products manufacturing organizations. Here are five key questions we got here up with:

· First, what’s the predominant aspect your business has to do with the new economic system to guarantee that you are paid the best fee in a well-timed way on your services and products?

· Second, is there anything about how you produce your merchandise that a customer can remember that could justify paying you extra than your competition?

· Third, what may be executed to lessen the price of producing your products with the intention to now not lesser quality, price, competitiveness or income?

· Fourth, what can be carried out to reduce the charges of retaining, handling, and training personnel?

· Fifth, if your primary consumer base has been reduced by half next month, what would you do right now to replace that lost revenue?

If you can hopefully offer the answers to those questions, you’re nicely on your manner to grooming your commercial enterprise version to ensure growth and stability within the next decade. If you can not find a solution to a few or all of these questions… Properly, you are in all likelihood already properly aware that a few modifications want to be made. So how do you start enhancing your business model so it could thrive in the new economy?

Let’s don’t forget the first-class or at the least the maximum worthwhile solutions to the 5 questions above. You would possibly even do not forget each one as a category via which to assess your commercial enterprise version for possible innovation. This is well matched with the new financial system.

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First, the first-class way to be paid a fair quantity in a well-timed manner to your services and products is to supply an ideal product constantly and extra speedy than your competitors, or at the least consistent with the purchaser’s nice expectations. If this isn’t always feasible with a purpose to accomplish, you’ll continuously be chasing market proportion within the new economic system.

Second, except you are in a completely particular marketplace, there is genuinely nothing approximately the way you produce your product that maximum customers would recognize, that might compel them to pay you a couple of-ofur competition this is offering a comparable product functionality and looks.

Cabinetry and wooden merchandise have been trending on this path for years however within the new financial system it is going to be a given. In many cases previously rigid architectural specs have conceded to this truth in maximum components of the united states of America and on many jobs, resulting in stapled cabinets striking proper down the corridor from cabinets with conventional excessive first-rate dowel production.

Third, the only approaches to reduce manufacturing fees without struggling any negative effect on your merchandise or marketplace proportion may be divided into categories: automation and standardization of all tactics which are an excessive value or excessive earnings and elimination or outsourcing of all tactics that aren’t. If any of the techniques that your commercial enterprise model calls for to transport a task from contract to very last price aren’t including the significant value or effectively expediting of completion, you have got a weak point that is reducing your earnings or your potential compete in the new economy.

Fourth, the best sensible manner to lessen worker related fees is to reduce the range of personnel and the general skill stages required. This can issue heavily into the choices you’re making with admire to the 1/3 category of innovation above. As badly as this united states desires more excessive paying jobs, maximum timber products producers will not offer them and continue to be competitive in the next decade.

I am virtually unhappy just to accept this truth, being a lifelong woodworker and cabinetmaker who started as an apprentice at 14, but this is now an inescapable fact. Between the unknown charges which are being created by new legal guidelines, coverage necessities, etc, the decline of professional artisans inside the workforce mixed with a low interest in the skilled trades amongst younger humans, your capacity to retain first-class employees and control associated expenses is lowering at an alarming fee. Ironically, your nice shot at creating new jobs inside the future may additionally rely upon how effectively you could reduce those expenses now to adapt to the brand new financial system.


I am a writer, financial consultant, husband, father, and avid surfer. I am also a long-time entrepreneur, investor, and trader. For almost two decades, I have worked in the financial sector, and now I focus on making money through investing in stock trading.