Recession Coming? The Right Mindset Will Help!

If you watch or read about current economic news and trends, there is talk about a looming recession. In general terms, a recession is defined as a significant decline in economic activity, typically lasting for several months. While the global economy has been recovering from the COVID-19 pandemic, there are ongoing concerns contributing to the predictions of a recession. Regardless of whether or not these predictions prove true, with the right mindset, business owners and executives can overcome the challenges of a potential recession. In fact, the right mindset and strategy can create opportunities and a competitive advantage when the going gets tough. But before getting into a mindset discussion, let’s take a look at what is driving these predictions.

Economic Indicators

A recession is often characterized by a decrease in Gross Domestic Product (GDP), rising unemployment rates, and a decline in consumer spending. There are several current factors contributing to a potential recession, including:

1. Inflation: Inflation has been on the rise in recent months, with the US inflation rate hitting a 40-year high in 2021. This could lead to a decrease in consumer spending as people have less disposable income. Additionally, rising inflation leads to higher interest rates, making it more expensive for businesses and individuals to borrow money.
2. Supply chain disruptions: The COVID-19 pandemic has caused significant disruptions in supply chains, leading to shortages of goods and higher prices. These disruptions may continue to impact the global economy.
3. Geopolitical tensions: The war in Ukraine and ongoing tensions between major global powers such as the US and China could be contributing factors. These tensions can lead to more trade disputes and sanctions impacting international trade and affecting the global economy.
4. Debt: Many countries and individuals have taken on significant amounts of debt during the COVID-19 pandemic causing financial stress.

Fixed Mindset v. Growth Mindset

The concept of growth and fixed mindsets was created by psychologist Carol Dweck in her 2006 book, Mindset: The New Psychology of Success. Generally speaking, Deweck says that challenging situations, such as a recession, can be catastrophic for those with fixed mindsets. However, with a growth mindset, you believe you can gain the knowledge and skills necessary to succeed, which makes every challenge an opportunity. 

The Fixed Mindset - Intelligence is static which can stop them from reaching their full potential.

A person with a fixed mindset tends to:

• Avoid challenges
• Give up easily
• See effort as a waste of time
• Ignore helpful negative feedback
• Feel threatened but others’ success

The Growth Mindset - Intelligence can be developed which leads to the highest level of success.

A person with a growth mindset tends tends to:

• Embrace challenges
• Persist when facing setbacks
• View effort as an essential part of success
• Learn from criticism
• Find lessons and inspiration from others’ success

It’s Not Too Late

Whether it is a looming recession or other business challenges, it is not too late to change your mindset. As a business coach, part of my job is helping business owners and executives learn to operate with the right mindset. In other words, choose to live in a world of abundance not scarcity. I work with clients to transform a fixed mindset into a growth mindset which is one key to overcoming any personal or business challenge. I also use a variety of tools to uncover and exploit opportunities that competitors may not see, also known as the X factor.

So if the status quo is not working out for you, and you want to reach your full potential, I am here to get you to break through to the next level. All it takes is a phone call. So, let’s have that conversation and get you on the right path.