
By Keith McElroy
Are we in the middle of an accident caused by human error, or are we in a catastrophe that was an inevitable shift? The influence of the Internet and related technologies over the last 20 years points our attention to a shift in the economy. Other factors catalyzed the shift. Baby boomers staging for retirement with lots of money to invest is a factor. The changes in China’s economy and of course 9/11. A crumbling of some things that we have taken for granted can be interpreted as a reminder that changing focus to survive may lead to opportunity.
I recall, years ago, watching a business owner save his company from a major financial loss by bringing his employees together and explaining the economic realities while also providing assurance that he had a plan to survive and would do all in his power to retain jobs. The following six months were dramatic in that margins more than doubled and the deficit loss was followed by exceeding performance beyond what would have happened if the loss had not occurred. His bold leadership paid off.
Opportunities to thrive?
Retail and business spending has a cause-effect aspect that opens doors to observant entrepreneurs. Dramatic reduction in traditional workforce positions leaves under-serviced markets. Corporations will contract out work to smaller, capable companies that understand the critical needs. Consumers will be on the search for ways to improve their quality of life on a frugal budget. For example, the reduction of car purchases will breed new needs for faster, cheaper and easier ways to extend the lives of our aging cars as well as better ways to get around. The movement of baby boomers through the aging process with better health than their ancestors (but diminishing income) will create demand for bridge housing that provides the ease of life of a retirement facility with the youthful independence of a time share. Less driving means we will want to be closer to shopping, dining and mass transit and we will seek to invest less time trying to find what we need.
Consider repositioning yourself or your organization as a facilitator of problem solving amidst the disaster. Learning from the lesson of US Air 1549, imminent danger is followed by heroic leadership, followed by success, followed by jubilation and reflection on the value of pulling together and the seasoned experience of a veteran pilot who responded to the need.
Tools to grow by
Applying technology to the opportunities before you can be a smoother path than you might imagine. Take, for example, these ideas that can accelerate the breeding of a new idea:
1. Use a monthly Intranet service to keep track of your projects and your growing client list. See www.37signals.com and www.salesforce.com. Cost $10 per month and up
2. Rent “by the month” Call Center and automated response. See www.angel.com. Cost $100 per month and up.
3. Develop an informational Web site about your industry. Cost $15 per month and up.
4. Reach out more proactively to existing and new clients with a focus on innovation and problem-solving. See www.constantcontact.com. Cost $20 per month and up.
5. Upgrade the accounting software. Quick Books online provides access anywhere which is handy when you are working hard on a shoe string. See www.quickbooksonline.com. Cost $50 per month and up.
The economic shift is real and the road is difficult. Consider making a migration toward the new global business landscape with technology that does not stretch your budget and increases your value to those you serve.
Keith McElroy is an independent software consultant specializing in development of software for a broad range of businesses and government agencies. Keith may be reached by e-mail at keith@mcelroy-tech.com or by phone at 530-591-3052.




