I was in Europe this week visiting customers and partners; Monday was Amsterdam, Tuesday Munich and Wednesday London. About a dozen visits in telecommunications, online retail and consumer electronics industries.
What was amazing to me was that the Europeans think the US economy is in a total tail spin. Now granted things are not perfect, but based on what I heard you would think that half the US is unemployed and standing in a soup line. We would discuss their objectives for the coming year and current projects we have underway (yes there are still projects getting done out there) and then, in every single meeting, they would lean across the table in a low voice and say something like, “How bad is the economy in the US really?”
Media loves negative news and there certainly has been lots of it, but, in my humble opinion, I think we now have a negative spin cycle that is feeding more on itself than reality. We read the negative news on slow buying, which creates more negative news and less buying and on and on and on.
We stated during our Q3 earnings call that our Q4 pipeline of new business was stronger than the pipeline we had in Q3. Also, we were very fortunate to finish Q3 with over $100M in cash and short term investments on our balance sheet and no debt. We are seeing companies spend money and do new projects. Overall our business is up nearly 25% year over year (yes, even with the recession that we now know started in December 2007).
Can I ask a favor? Make sure the good news in your world gets passed along. Also when you hear someone passing along needlessly negative news, tell them to put a cork in it. I think we will all be better off.
December 17, 2008 at 9:55 am
Greg,
I have heard the same thing over and over again concerning the negative spin about the US everywhere. We hosted a college student over Thanksgiving from China and when asked why he came to the US he looked at us with disbelief. He said, “Everyone in the world knows that America is the best country in the world. Don’t you believe that?” Humbled, I said absolutely, but not everyone in our own country believes it, especially the media. He said that the media is China is worse with lies!
Bottom line, I will keep spreading the good news – because there is a ton of it like Right Now’s business being 25% year over year! Give me a job selling your products and services. I have started selling enterprise OMS/CRM eCommerce software and services in 1997 and likewise I have had my best years to date over the past 2-3 years! Surprise to the media.
I would take that positive call from you and we could change the world we face. Keep up the exciting work and Merry Christmas and Happy New Year!
Respectfully submitted,
Greg McCoy
December 24, 2008 at 8:11 am
I frequently point out that the Economics department at the college I attended was not in math or science. It was in Social Sciences. In the end economics is about whether we feel like there is an abundance or a scarcity. When I hear my friends and coworkers tell me that they are doing fine but they have decided to cut back just in case the economy worsens I want to scream. The economy just did get worse I tell them.
On the one hand we as a nation and a world do need to consume less of the worlds resources. Imagine if every country in the world had the population density and lifestyle of middle class America. We would quickly consume all of the non renewable resources in the world. But if we approach the realities of limited resources as it is happening now, through a fear of scarcity, the people we that will hurt most are those who can least afford it, the poor and struggling. If we reduce our consumption with a feeling of abundance we have an opportunity to make a better world. Let us spend. Let us spend on research for renewable resources and fuel efficiency. Van Jones is one of today’s great thinkers. He is among a growing movement to transform our economy and elevate the poor to the level of surplus makers rather than welfare recipients by using this largely untapped workforce to build a green economy. My hope is that the US will help lead the world to the future he describes or one like it.
So my message is simple. Feel good about what you have and what you can accomplish. Don’t be afraid. Care about your environment. Care about your community. Care about all the good people of the world. Spend wisely but remember that you have money because someone chose to spend money. Return the favor owed.
Mike