Small business and “the rebound”

If you own or run a small business you can surely relate to the character in Greek mythology – Sisyphus.  As a punishment from the gods, Sisyphus was compelled to roll a huge rock up a steep hill - but before he could reach the top of the hill, the rock would always roll back down again, forcing him to begin again.

The last 12 months have been hell for small businesses.   Sales started to drop last fall as it seemed like everyone panicked about the economy at the same time.  Most organizations have been forced to slash costs, including eliminating employees and reducing salaries and benefits for those remaining.  Credit has been hard to come by the past year, and existing relationships with lenders have often been strained.  Growth plans have been shelved and some companies have even changed their business model as they fight to survive.  Compounding the stress has been the talk of higher taxes and benefit costs in the future.  It’s not hard for small business owners to sympathize with our ancient friend.

But wait! don’t go reaching for that DVD version of “The Secret” in order to gin up some positive thoughts. (no… I’m not putting up a link to “The Secret”… you would be better served reading ancient mythology).  If you believe the experts, the worst of the storm is over, and  my un-scientific conversations with small business owners would point to the same conclusion.

If it’s true, it means a whole new set of concerns – and opportunities – for small businesses that have cut staff to the bone and now need to get ready for the rebound.  As I talked about in a prior post, those remaining employees are weary and getting them to work harder as the business picks up again is not an option.  Small business owners need to be as resourceful on the rebound as they were when things were at the worst.

Here are a few of the things we are telling small business clients about the challenges ahead:

• Make sure you are taking care of your existing employees.  If you cut hours, pay, and benefits in the past months to survive - reinstate them before adding any new resources.
• Use consultants initially before adding permanent staff.  You can pay as you go, and get the expertise/horsepower you need quickly.
• Understand how your customers/clients needs are changing - they are going through these same issues.
• Stay focused on what is important to grow the business again.  Some of the projects you ended when cutting back should stay dead. 

Sisyphus was destined to roll that rock up the hill for eternity.  Small business owners have the opportunity to get focused and get out from under it.  Start planning now.