Rolling with the punches

Today’s big 3.2% fall in the Australian sharemarket sends a clear message to Australian entrepreneurs – this GFC thing might still have a little way to run.

While we in Australia are clearly over the worst of the downturn and are now firmly focused on recovery, the rest of the world is caught up in a big economic hangover.

Spiralling debt levels, high unemployment and weak economic growth are all weighing heavily on the economies of Europe and North America and as today’s big fall in the sharemarket shows, we are not immune from copping some of this backwash.

For Australian entrepreneurs, the message from the sharemarket is tread carefully. The shock that the global financial system copped in the last 18 months was severe and the cost of rescuing the global economy – huge Government stimulus programs – will stay with us for years to come.

And some parts of the sector – credit markets are the obvious one for SME business owners – will take some years to recover.

However, the other big economic news of the morning shows that entrepreneurs in Australia cannot afford to take their eyes of the main game – growth.

The ANZ’s job ad series shows jobs ads rose during May, indicating that while business owners might be cautious, they are still intent on strengthening their teams and building their businesses.

It’s a good lesson. While the markets can’t be ignored, they shouldn’t become a big distraction for business owners.

There is very little you can do about debt problems in Europe or unemployment lines in America – but there is plenty you can do about growing your sales, improving your products, boosting your margins and expanding your business.