Dell: Don't be caught in headlights of recession
Friday, 05 December 2008 09:38
As the global downturn leads the UK into recession, Michael Dell, head of computer giant Dell, is urging people not to be scared into inaction.
"One of the things that people do instinctively when there are tough times, is they kind of do nothing," he says.
"I think this is a time where the seeds of really successful new businesses will be created."
He warns many firms "hunker down, completely stunned into inaction."
"I think that's actually the worst thing to do."
Michael Dell founded his first company as - PC's Limited with capital of $1000 in 1984 as a student in Texas - building computers.
By 1987 the firm already had operations in the UK. In November this year, Dell reported revenue of $15.2 billion and profits of $1 billion, and Michael Dell is still the chairman and chief executive of the firm.
Mr Dell reckons now is the time to search out opportunities and not batten down the hatches.
"In fact if you look in our industry, which I'm most familiar with, you know the greatest companies kind of came out of, and were formed, in some of the most difficult times in the industry, when no one was really looking, and everyone thought the whole thing was going to go south, and all of a sudden a whole new breed of companies emerged."
He advises small businesses now to still to think of investment.
"You know sitting back and doing nothing, you quickly end up with a very uncompetitive capability, and so that's why you know it's really important to pick where you're going to invest, but to invest in those things that are really going to drive productivity."
And finding opportunities now rests on going online. Mr Dell explains conversations that are happening online with the billions of people offer an enormous opportunity for businesses of all sizes - especially through innovations like Facebook.
"Social media is by far and away one of the most cost effective ways to reach your audience, and has very kind of long-lasting and sticky implications and you know customers by their nature, love to be involved in, you know, whatever it is they're doing at a deeper way, so engaging customers in those conversations is a super-effective way for any business to further itself," he explains.
However, behind the technology, the need for sound business models remain.
"You've got to kind of know what you're good at and have a clear focus and a clear articulation of what it is that you offer that's valuable, why it's valuable," Dell explains.
Michael Dell was speaking to smallbusinessadvice.tv, from the British Chambers of Commerce.
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