hang on for the ride

it's no secret that the current economy is throwing every business, large and small, into a kind of tailspin. with federal money that should help bail some companies out, the market will be that much tougher on those that don't get support. for small business owners who don't qualify for federal bailouts (more on that in this blog entry) the prospects for the next quarter can seem bleak.

well, i'm not one to jump on the pity bandwagon. no one who started their own business with any kind of realistic picture of what business is about thought that it would be easy.

so it won't. get over it.

as a small business owner, it's your job to focus on keeping your business running and staying out of debt. while profitability would be nice, if it takes another year to get there, don't despair. this market is about staying in business, not losing employees or ground in the market, and being there a year from now to turn things around into profitable ventures.

so, how can you accomplish that?

the best way to achieve this is to get back to basics. remember when you didn't qualify for a car loan b/c you were 17? well, relive that dream. when you want something, start saving money for it. forget about maxing out credit cards, or even USING credit cards if you can't pay them off at the end of the month. keep your expenses where you can manage them, deny yourself some pleasures and remember that there is a long term goal in mind.

next, set a budget. the reality is that you can't do business if you don't spend money. you need product to sell, advertising and marketing to keep business coming in, and employees to keep the company running. know that, realize the numbers and sit down and put together a budget for it. it's a lot easier to meet those expenditures if you
1. know what they are, and
2. are able to track them so that you can make sure you have incoming dollars to cover them.
remember that in a tight economy, there may not be a lot of profit in some quarters, that's OK. just don't lose ground.

finally, expect to be in this for the long haul. while i'm cautiously optimistic that the new regime in washington will be working hard to make the changes we need for economic recovery, there is no magic spell that can fix this immediately. we should all be prepared that the next year or so will be a long and bumpy ride for us all.

i truly hope that the next quarter will bring some stability for small business owners, but the reality is that layoffs and closures of larger organizations are likely to be felt by all of us. remember to work together with your fellow small business owners as well as your customers and vendors to keep business going. be responsible about spending as well as paying your bills, and we just might come out of this OK.

good luck and good business.