Recessions are terrifying, and as the Federal Reserve Bank of New York report on the 2008 Great Recession showed, small businesses were hit harder than large businesses.
Below is a chart from that report.
contributed
Let’s put together another chart from that report. They included charts from the National Federation of Independent Businesses showing the percentage change of these factors from 2006 to 2010. Rates are about flat, but weak sales have pushed him up 25%.
All recessions are different. The 2008 recession was deep, and they all have some things in common. Customers have to be retained, layoffs occur, costs need to be cut, and cash is king. Small businesses will be hit harder than large businesses. This is because they typically do not have large cash reserves, well-trained management teams, and broad customer bases.
When I look back on my career and think about the small successful growth companies I worked for and others I knew and had success stories with, they all had one thing in common. business success. As a SCORE mentor, I see the same traits in many of the leaders I have had the opportunity to work with. All of these organizations have faced and persevered through difficult times. What are these special talents that I see?
- They understand and accept that it’s up to them to make it happen. This is the mantra I learned from Brian Tracy and it pretty much sums up their acceptance of full responsibility.
- An internal response is required. They learn to face these fears and still move forward. Fear drains your strength badly. Layoffs are especially painful because they know and like their employees. Don’t shout and show your anger!
- Another feeling you have to face is feeling ashamed and needing to explain to your family and others what you are going through. In this recession, like everyone else, you are not alone, you are the problem solver, not the cause of the problem. Thing. Don’t waste your energy on other people.
- They are cautious in making decisions. Cutting costs across the board doesn’t work. You probably need to cut your marketing, but these cuts are based on focusing your money on the parts of your marketing program that give you the most results. As mentioned earlier, the main factor in the 2008 recession was the decline in sales. Growing with today’s most profitable customers requires special attention from leaders. These leaders focus on the organization’s special strengths.
- Another skill of a successful leader is documenting the plan and making it work consistently. It may take some tweaking, but it doesn’t deviate from your goals or give you less than desirable results. This is not an organization run by committees.
The recession is scary. they demand the best from you. The study, conducted on the 2008 recession, reported that small businesses that survived the recession recovered faster than large companies. One thing that has helped me during difficult times in my career and suggested to SCORE clients is to create an advisory board or find mentors available when needed to discuss concerns. Then it’s up to you. I’ve seen many small business leaders grow and make it happen. You can too! don’t give up. SCORE can help.
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or contact me
richard.jordan@scorevolunteer.org
and 218-251-4413.
SCORE has free in-person and online workshops for anyone interested in the topic, including a series of webinars on various aspects of entrepreneurship. For more information,
www.score.org/twincities/local-workshops
Browse recorded, online and in-person options.
As a resource partner of the U.S. Small Business Administration, SCORE, a provider of free business mentoring and education, notes that the organization has helped more than 11 million entrepreneurs through mentoring, workshops and educational resources since 1964. doing. Service Corps of retired cadres.