Dot Column: What Gets a Business Through Hard Times? – Brainerd shipping

Recessions are scary, and as shown in the Federal Reserve Bank of New York’s 2008 report on the Great Recession, small businesses were hit harder than larger businesses.

The following is a chart of that report.

He contributed.

Let me attach one more chart from that report. They included a chart from the National Federation of Independent Business showing the percentage change in these factors between 2006 and 2010. From mid-2007 to 2009, insurance prices, labor availability/quality and competition for large businesses decreased, financial conditions and interest rates were mostly level and weak sales rose by 25 percent.

Every recession is different. The fall of 2008 was tough, and they all have some things in common. You have to hold on to your customers, there will be layoffs, costs must be cut, and cash is king. Small businesses suffer more than larger businesses because they often lack deep cash reserves, a well-trained management team, and not as large a customer base. Your chances of survival increase with strong and dynamic leadership.

When I reflect on my career and think about the less successful growth companies I’ve worked with and others I’ve known and had success stories, they all had one thing in common: a leader who was determined and committed to maximizing the success of the business. As a SCORE consultant, I have seen similar traits in many of the leaders I have had the privilege of working with. All these organizations have faced difficult times. What are these special abilities that I see? I think the main ones are:

• They know and accept, “If it happens, it’s up to me.” That’s a mantra I learned from Brian Tracy, which includes accepting total responsibility.
• Internal measures are important. You learn to face these fears and still move forward. Fear is a terrible drain on your strengths. Layoffs are especially painful for employees who know and love them. Shouting and showing anger is not done!
• Another emotion to deal with is feeling embarrassed and having to explain what you’re going through to family and others. In this failure, as in others, you are not alone, and you are not the cause of the problem, you are the problem solver. Your key relationships are with your immediate family, employees, customers, bankers and suppliers. Avoid wasting energy with others.
• They are deliberate in decision making. It does not work to reduce costs across the board. Marketing will probably have to be cut, but those cuts are dependent on putting money into your marketing program that will get the biggest results. As explained above, the sales discount in 2008 Growing with the most profitable current customers requires special attention from the leader. These leaders focus on the unique strengths of their organization.
• Another skill of successful leaders is to put their plan in writing and be consistent in implementing the plan. Some adjustments may be necessary, but they will not be removed from the goal and will not achieve the desired result. This is not a committee-run organization.

Failure is scary. They demand the best from you. In the year Research into the 2008 recession found that smaller companies that survived the recession had a faster recovery than larger companies. What has helped me through a difficult time in my career, and what I offer SCORE to clients, is developing an advisory board or having mentors you can turn to when needed to talk through your concerns. If it has to be, that’s up to you. I have seen many small business leaders grow and make it. You can too! don’t give up. SCORE is here to help.

Visit www.score.org or contact me at Richard.jordan@scorevolunteer.org and 218-251-4413.

SCORE has free in-person and online workshops for anyone interested in a variety of topics, including a series of webinars on various topics related to starting a business. For more information, go to www.score.org/twincities/local-workshops

And browse through recorded, online and in-person options.

As a resource partner of the US Small Business Administration, SCORE – Provides Free Business Counseling and Education – the organization has helped more than 11 million entrepreneurs with mentoring, workshops and educational resources since 1964. The nonprofit SCORE was formerly the Service Group for Retired Executives.