Attended the launch of Creative Republic last night in Coventry. Having lived and worked in and around the city for many years, it never ceases to amaze me how much there is going on and to see here. And yet…

How is it the city still has an air of despondency, why can’t it find the key to successfully promoting itself, what will it take for outsiders to take it seriously?

It struck me that there is a comparison with our economy at the moment. On the surface, it’s all doom, gloom and despair, and yet underneath there is a vibrant and enthusiastic marketplace.

What will it take to change the perception? Maybe those who exist to make money at other people’s expense need to visit Coventry.

After talking us into it, its interesting to see how the media is now telling us how to manage during a recession.

Despite the impact of the banks self-made crisis, people I am talking to are still working hard. Times are always tough when you are running a business, and having waves of negative publicity rolling over you doesn’t help. When faced with a decision, it will be more tempting to play it safe than to take a small risk.

I’m not talking people into taking unacceptable risks, but to look carefully at what is a real risk, and what is a perceived risk.

The opportunities are still out there.

I had an email from an ex-colleague yesterday who, in reply to my question asking how they were, replied “peddling faster than ever”.

While glad that they are “busy”, and apparently still enjoying the challenge of their work, I was left wondering whether the extra effort being used was resulting in extra output and benefit to the organisation.

I can still clearly recall the story from years ago, when I worked at IBM, when an employee under threat of redundancy started working every hour he could – to improve his chances of being kept on. Sadly, he was one of the many 100’s (1,000’s?) who lost their jobs, and I suspect one of the main reasons he went was because he had failed to understand that it’s not inputs that matter, it’s outputs. His extra work did not increase his contribution and value to the company.

We have to focus on what difference our work makes, which is a bit more complicated than just working differently (or harder).

I think it was Scott Peck who started a book with the great line “Life is difficult”. Talking to someone today, it was clear that they faced a really tough choice. They have steadily grown their business and have reached a size where they now need some proper financial expertise, but feel too small to justify the additional cost. If their plans take longer to come to fruition than planned they will be out of pocket, if they take someone on board they will be out of pocket until they realise their earning potential; either way they are currently peddling like mad to keep on top of the paperwork.

This kind of decision is very common, and it’s no consolation for me to suggest that there is no right answer. Growing a business does not follow a straight line, it’s like climbing stairs; you either take the step up, or stay where you are. And when you are carrying a heavy load, the effort to step up feels huge, with no guarantee it will be worthwhile.

Life is difficult, but if you are contemplating such a step, there is only one way to find out if it’s right for you…

Now I’m not one for telling jokes, but these are worth sharing:

A man went to his bank manager and said, “I’d like to start a small business. How do I go about it?
“Simple”, said the bank manager, “Buy a big one and wait.”

The bank returned a cheque to me this morning, stamped “Insufficient funds”. Is it them or me?

And my favourite:

Bradford and Bingley employees are concerned that they were given no notice of the takeover by Santander Bank.
A Government spokesman said:”No-one expected the Spanish acquisition.”

Sometimes the truth is harder to make up than fiction…

I’m sure this is a theme I will keep returning to, but I seem to be spending more and more time talking about people rather than money. Financial conversations about issues like governance, strategy, investment, and outcomes all come back to the people in charge, and how they are directing their own, and their colleagues, in the furtherance of the businesses primary objectives.

And yet it’s so easy to lose sight of what your business is trying to do. Having an objective point of view is easy when (like me) you are “on the outside looking in”. But it’s a point of view all businesses need to have.

Now the banks have found a way to get back on their feet, the business owners I talk to are all wondering about what the impact will be on them. Clearly those who have relied on loans and support from banks have found life a lot harder, but those who have worked hard to avoid borrowing or overdraft facilities are feeling unsure about whether they will be affected.

An inability to manage change is, and always has been, the greatest threat to a business. The problem is that change will come fast, and only those ready for it will survive. Change may be difficult to deal with after such a long period of sustained growth, but it has to be faced.

After a round of meetings this morning, I am astounded by the potential for doing business that exists. Is it the current financial climate, or are most people too busy to talk to other people? I have found three business opportunities that could make a real difference to two organisations, if they are willing to spend a little time talking to each other and aim high.

As well as asking the right questions, the role of a FD is to suggest potential avenues of activity. I’m not saying which are right or wrong, but often the objective eye and ear will pick up an unexpected solution.

That’s why I love my job.

Responsibility is a great word. It might be mine, yours, or the best of all – someone else’s. We all accept a little ourselves, but expect a lot from others.

Right now, I’m juggling two organisations that have decided to take responsibility for their own financial situation and are prepared to do whatever it takes to ensure they continue their excellent work. And to do this in the face of seemingly never-ending red tape, ignorance, and just plain stubbornness to give a helping hand when it’s needed.

What does it take for someone to take a risk in the name of a good cause? It’s not as if we are short of some good news stories at the moment.

The way I see it, the “bigger” problems in this world are not caused by being helpful, but by being greedy.

At an event I attended last night, I was struck by the view that everyone I spoke to had about the current banking crisis – it’ll be ok…

Nobody was sure why it would be ok; but somehow, by keeping their heads down and working hard, the problems reported in the press and media would pass and the world would carry on as before.

Now this may be true, but it worried me that none were saying that they were using the time to review their finances. When it looks like rain, am I the only one to check that I haven’t lost my umbrella?