Marketing Edge - Turning Your Vision into Reality

SMALL BUSINESS SURVIVAL TIPS NEWSLETTER: May 2009

Thank you for subscribing to Marketing Edge's SmallBusiness Survival Tips monthly newsletter. This month's issue discusses the importance attitude and perseverance play in business success. I hope to see you at my Small Business Survival Seminar, run in conjunction with MassMEP on June 11.

Beth Goldstein

Is business success like a box of chocolates?
Simply the luck of the draw...no matter how much research you conduct to decipher between those 'opportunities' filled with soft, delicious chocolate versus those weird, gooey, orange tasting pieces that stick to the roof of your mouth? Can you really influence your own triumphs or is it luck? And what role does attitude play in your success?

I recently returned from a trip to Detroit to watch my colleague, Mark Lee, teach his class for inner-city entrepreneurs through the SBA's e200 program. In all of my years of travel I had only once made it outside of the Detroit airport and was intrigued to see the city that I consider to be the epicenter of the recession. With over 22% unemployment (almost three times the national average) I wasn't sure what I'd witness, especially with 16 inner-city business owners all impacted directly or indirectly by the fallout in the auto industry. I anticipated not just attitudes of defeat but an excess of boarded-up buildings and empty streets where businesses once flourished.

Boy, was I shocked by what I found. Almost half of the entrepreneurs for the 6 pm class showed up a full hour early to meet with their fellow students and discuss strategies and goals for their businesses. Talking to several of them before class I learned just how severely the impact of the global recession combined with the troubled "Big Three automakers" affected their business models. Yet not a single person complained in an "Oh Whoa Is Me" tone. I expected comments of defeat and despair yet these business owners talked honestly and openly about how they've been through it before and they will (no question about it) get through it again. Throughout the three hour class, they were fully engaged with the instructor and very supportive of each other. They came prepared to learn and their 'we're tough' attitude was very empowering, not just for each other but for me, as well.

It's easy to get down in a lousy economy and feel the weight of the world bear down on you....assuming that no matter what you do, you're going to get stuck with the worst piece of candy in the box...and might never recover. However, taking a lesson from the entrepreneurs in Detroit, I strongly encourage you to use this time to assess your business and prepare for future success! WHY? Because history has shown us time and time again...business growth post-recession is strong and powerful.

How to Find the Best Pieces of Chocolate in the Box
Let's look at the statistics for small business growth. 99.7% of the almost 27 millions businesses in the US are considered small, representing a powerful group. These small businesses (yes, that's you) generate 60-80% of net new jobs annually and have a tremendous impact on the economic health of the country...and while 90% of all small businesses have fewer than 20 employees, these businesses created almost 83% of the nationals' net new jobs from 2004 to 2005 (sources: SBA, Office of Advocacy, NBER)

During the recession in the early '90's and in the first part of the 21st century, "business starts" (number of new businesses launched) dropped until the year that the recession began. Interestingly enough, the number of new businesses that began following the recession was incredibly strong. For example, from the start of the recession in 2001 the number of new businesses that started increased by almost 100,000. These firms launched during challenging times, resulting in stronger business models, able to succeed in good AND bad times. Other companies that started during a recession include, GE-1876, Burger King-1954, Sports Illustrated-1954, Hyatt-1957, Jim Henson (Muppets)-1958, Trader Joe's-1958, FedEx-1973, and Microsoft-1975 (source: InsideCRM.com)

What's the Implication for Your Business?
What are the lessons to be learned here? Now is the time to invest in your business and look at the jar being half full...not half empty. Here's some proof to fill your jar:

The prime rate today is 3.25%...it was double that-6.5% just 16 months ago
Energy costs have dropped significantly allowing cheaper business travel and lowering the costs of goods sold for many businesses
The inflation rate in April was 0.74% compared to over 4% a year ago

5 Reasons Why Recessions are Good For Business
1. If you've got cash...it will go further
2. There is great talent to be found to support your growth
3. Competition will likely be scrambling
4. You can reinvest money in your business or buy out others
5. You have time to plan and work ON your business...not IN it

So, is business like a box of chocolates? Definitely not....you have more control than you realize to empower your business ---if you've got the right attitude. You just have to keep digging for the golden nuggets...hidden under the yucky, gooey mess.

Good luck with your business venture. If I can help you turn your vision into reality, please don't hesitate to contact me at beth@m-edge.com or by phone: 508.893.0976.

Questions?

Please complete our Contact Form or call us at 1.508.893.0976 to discover how we can help you grow your business.