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Andrew Penny, January 10 2023

Your business is definitely not Average

I am reminded of the truism that the average person has less than one leg.  

Looming recessions, stock markets down, bond values up, interest rates up, inflation up, market contractions, etc. It would seem that there will be lots of turmoil. These changes will impact you to some extent if you are highly leveraged. But when you think about the revenue side of your business, the useful thing to remember is that all of these indicators are merely AVERAGES and don’t mean that your sales need to suffer or that you should scale back on your growth objectives. 

The impact of these indicators on the coffee market, the mining market, or the construction market are all different. And, their impact on the demand in subsectors (Kopi Luwak, lithium, or rural residential solar) are also different. So while averages can be useful in some cases, in most cases it is an incredibly inaccurate and misleading calculation.  

As you move into 2023, look at your markets and evaluate the impact (positive or negative) that the changes in the world economy may have on them. As a small or medium sized firm, you have the agility to take advantage of these undercurrents and shift your focus to a more favorable market niche. And remember, the average person has less than one leg, but shoes are still sold in pairs 😊    

Andrew 

BTW –  Here’s another one of our posts about the perils of averages

Written by

Andrew Penny

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