Dusty air moves out
Back to basics looks financially viable
Afew weeks ago I was having a coffee with a friend in town. He observed how nice it was that Queenstown was clean again. He wasn’t referring to the efforts of council workers or the aftermath of a Saturday nights drinking. He was comparing today with the heady days of the late ‘noughties’ when new buildings were popping up continuously, construction activity flowed over onto the pavement and broke up pavements, infrastructure was being dug up and enlarged and everything was ‘gritty’. That prompted us to consider what the next year or so might bring. The immediate problem of course then was the threat of a USA debt default. Since then we have talked again. Default is passed (at least temporarily) and growth projections by the Reserve Bank are high. There are warnings that we might not be prepared for the buoyant period ahead. Businesses, they say, need to prepare for higher interest rates, skill shortages and demand for services. That reminded me of some advice I got in the thick of the financial crisis. Look at how your business was set up five years ago when it was smaller and work towards getting back to that. Maybe it’s time to reverse that advice. Is it time to start thinking about how you coped with those problems of growth in the mid-2000s and be ready to respond? As my grandmother used to say ‘there is very little new under the sun’.