It would likely be naive and shortsighted to suggest that we are "settling in" to this recession. But I will make the comment that I feel we have heard about this recession for long enough, that those of us who planned on addressing how it has affected our business, have already done so.

That being said, we are hopefully beginning to see the effects of our decisions - for better or for worse. In this week's column, I will discuss the necessity to differentiate between internal and external momentum within your business.

If there is any constant in the economy right now - it is change. Business is operating in ways it never has. As we all react to this change, it is imperative to recognize the difference between internal momentum and external momentum.

What do I mean by that?

I define internal momentum as the feeling that any particular aspect of your business is either doing well, or doing poorly. External momentum is the documented results.

Examples of internal momentum:

* A sense of excitement that things are starting to pick up
* A sense of agitation that things are getting worse
* A sense of doubt in the economy after watching the news

Nothing is inherently wrong with having any of these feelings ... but it is important to recognize them for what they are and understand if they are actually affecting your business - or just your mindset.

Examples of external momentum:

* The Month/Month change in your number of submittals / placements / etc
* The Month/Month change in your marketing / advertising budgets
* The Month/Month change in your costs
* The Month/Month change in your revenue breakdown (if you service different industries)

All of these results combined will provide you with a better understanding of how you are operating. Have you cut a lot of minor costs and avoided making the difficult decisions? Have you talked about increasing your marketing or have you actually done so? Is business slower because you are spending more time being worried about the economy than calling on clients, or are clients actually not picking up the phone (if so, by how much)?

Be honest with yourself and you can make your decisions based on better information.