One does not have to look far to see the impact of the collapse of some Euro-Zone economies. The shock is quite palpable and is being felt at every level of society in Portugal, Greece & Ireland. But you also do not need to look far to see the blind faith that was placed in the economic growth continuing for some time to come.
The time before the bubble burst was the most active and optimistic in business and construction industries across Europe. Nobody (apart from a few Economists and analysts) wanted to believe that the party was going to come to an end, and therefore continued unabated, in their belief that it would continue on – or at least until the next big deal is done. Now we see the impact of that denial through the high unemployment, bankruptcy increases and half-finished construction sites up and down their lands.
But none of us are unaffected by these economic collapses. It affects the daily lives of every government around the world, in our now globalized and inter-connected economies. We can all take lessons from this crash and learn how we might read the signs better next time around, because one thing we can predict is that there will be a next time.
In business we are also often tempted by two paths to growth. One that will be rapid, bring quick returns and seem to be easy to achieve as it is riding on the wave of a wider growth pattern. The other one, which can be a hard sell for shareholders, will be slow, sometimes painful, based on internal strength and a much shallower growth curve (albeit one that sustains over a much longer time line). Real sustainable growth however is based on the latter. It is based on sound business sense, a tangible product or service and a robust internal business model.
Like all economic bubbles, it is easy to get carried away with the excitement of the possibilities at the time, but those firms that kept their feet on the ground and looked to a steady path for growth are now riding the wave of endurance far better than some of their larger counterparts.
Sustainable business growth is by its nature fairly conservative. It does not look for double-digit growth or rapid expansion to new markets. It is about working from a position of strength and superiority in one area and gradually expanding from that, based on a realistic assessment or resources and competence capacity. If we take a leaf out of their book, we are likely to be better equipped to face the uncertain future ahead.

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