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  • Writer's pictureErika Andresen

Small Business Optimism Doesn't Have to be Small

Small business optimism is at 12 yr low. The National Federation of Independent Businesses conducted their annual study and it’s looking bleak for business owners. The results are caused by economic reasons: slow-to-decline inflation and labor market easing slightly plus material costs rising. This is without the small businesses reckoning with the fact 80% of them fall within the first 5 years anyway.

 

There are some techniques to ease the financial pain. Some of them include strategic price raising (this revolves around not using an across-the-board method but rather using the data from their own clients to see who can actually absorb the increased costs). Another is to maximize interest earnings. This is all well and good, but like I say with any planning or maneuvering, let’s get the business stable as a business first.

 

The arguments are aplenty about why making money is the most important. Is it? Is it worth it to invest in making money and, say, give an address for someone to show up to but either it’s the wrong address or no one’s home? I’m making an analogy: if businesses are unable to serve their clients due to a disruption or disaster, all the other planning has gone to waste. In either instance the meeting/sale/interaction never happens plus the business reputation is damaged.

 

Why make it more painful after getting a foothold by not being able to keep it? That false hope hurts so bad when it doesn’t work out.

 

This is why business continuity matters. Aside from paying a consultant (like me) to tell business owners where to look (or spending way less to buy a [my] book to learn about it), business continuity for a small business only costs time and effort of doing the work in advance. That’s a large factor as to why 80% of small businesses fail when only 5% of franchises fail in the first 5 years – franchises do business continuity: they have an unfair advantage because the work has already been done and it is replicated across the brand.

 

I want business owners to succeed. Communities are made better by their existence for the service and respite they provide. Employees get to keep making money so they can pay for their expenses and buy the things that enhance their lives…from other businesses in the community.

 

Business continuity keeps the doors open so the cash can keep flowing no matter what the hang up or when it comes in. At least one thing is reliable: the ability to serve. Not everyone can promise that. This is a level of optimism no one can take away.



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