
You can’t swing a dead cat in these depressed economic days without hitting a reporter prophesying the End of Days for some group of professionals. Here are three recent articles painting a very bleak picture for lawyers, doctors and nurses as we know them.
http://www.economist.com/node/18651114?story_id=18651114&fsrc=rss
http://www.nytimes.com/2011/04/23/health/23doctor.html?_r=1&scp=1&sq=doctor%20practice%20sell&st=cse
http://www.npr.org/2011/05/09/136138374/sick-economy-means-nursing-jobs-harder-to-find
The cliff notes for these stories are often the same: The profession was once prestigious, largely because the professionals made a lot of money. The market has changed and now no one is making money. Current participating professionals are now doomed, or at least destined to be really poor — possibly destitute.
These articles then get republished in professional trade publications, everyone gets depressed, and those with the least hope in succeeding drop out of the profession.
Don’t fall for the hype.
Here’s the reality: Empires, economies, industries, businesses and businesspeople (and even doctors and lawyers who don’t think they are businesspeople) all go through cycles. No matter how much prognosticators like to think we have this figured out during good times, we see crash after crash. And, no matter how much they like to tell a group of people they are screwed during rough times, we see recovery after recovery. You only need to look at Apple, Donald Trump or something as boring as the metals industry to know that, in business, no one is ever down for the count.
So, if you are feeling face down on the mat, here are a few quick thoughts on how to get back up again:
Use the downturn to your advantage: If business is slow, how about investing in customers for the future. Offer free consultations. Author free guides and think of ways to get them in front of potential customers (maybe Avvo’s Q&A and/or our Legal and Health Guides? <wink><nudge>). If you have the cash, think about buying assets at a discount – maybe a scanner, maybe a whole practice – from someone that did not plan so well. Reinvest in networking – i.e., meeting people who will help you drive your business in the future. Revisit your strategic planning, budgets and operational infrastructure. The list really goes on and on. While a lot of this may cut into your margins in the short term, think of it as taking the time the economy has given you to invest in larger future margins.
Refocus on differentiation: A recurring theme in the End of Days articles referenced above is that the struggling profession has become a commodity and, therefore, all participating professionals will fail as one. But this could not be further from the truth. In downturns, usually it is the bottom third of the professional class that is in trouble. If you love what you do and are good at it, then identify “why” you are good at it (i.e., why you are not a commodity) and invest there — both in time and in marketing.
Do whatever it takes to hang in there: In a downturn, a war of attrition emerges. So much of surviving this war is simply getting up from the mat and committing to make it to the final round. As I mentioned above, a large part of your profession will indeed surrender – heading off to some faraway place like art school or retirement. As those people leave the profession, they reduce the available supply which will serve as the first step up into the positive arc of your business cycle. Of course, those that planned the best during good times have the best chance of surviving tough times, so when you are standing on top of the professional rock in a couple of years take the time to think through how you can best position your business for the next inevitable crash (e.g., savings, variable costs, alternate revenue sources, etc.).
Who knew that Gloria Gaynor was such a sage . . .
Mark
p.s. For those of you who are not as familiar with the End of Days concept, here’s an explanatory MSNBC article. As you will note, some think the end of the world is only nine days away, so maybe we are all doomed. :-)