As we continue into recovery it’s useful to refer to the economic clock which describes four recovery steps.
So far we’ve been moving through ‘hesitant and uneven’ recovery where we typically experience one step back for every two forward. As a result, most of us have been noticing the good news/bad news mix in the market.
Taking the view that we will ultimately move through recovery, we need to prepare well if we’re to maximise the potential of the next boom. New products and services will be vital, which means innovation must become a priority.
But when is the best time to innovate?
Do you innovate at the start of a recession? Halfway through? Or at the end? Should you innovate halfway through recovery or at the top of the market? When to innovate?
We believe the absolute best time to innovate is right now. At the end of any recession businesses should allow enough time for the market to enter the recovery phase fully. Go too early and you could waste money innovating before your market is ready.
It’s important to remember how the economy follows the market by some six to 12 months. This means that when the market bottomed in March 2012 the economy took some time – September 2012 to March 2013 – to follow suit.
We’ve seen the economy begin its upturn after the March 2012 low. In the intervening 12 months the economy has confirmed that the situation is changing for the better. April 2014 therefore should have provided a long enough gap since beginning the upturn for the market wash-through to occur.
Businesses are becoming more positive…
At last small businesses are feeling more positive and most of our clients are having record trading months or have at least returned to their pre-recession position.
Given the current feeling of uplift, when will you begin to innovate?