For much of the time I’ve been a Small Business Advisor (since 2004), I have heard business owners discussing which way their business is going. Some businesses are resilient and stay steady in all economies, some are more fragile because what they provide is a want rather than a need, and some grow in any economic environment because they provide a great value or necessity.
These are the things that keep owners and GMs up at night. Should I hire, should I invest so others don’t pass us, should I prepare for a drought? These decisions can cause overreaction or, even worse, no action. Who should a business owner talk to?
Sometimes they talk to others in their industry who are struggling. This gives a more negative and often more emotional view. You can always find someone who will support your current thinking. Just look at financial advisors: right now, ½ are bullish about the stock market, and ½ believe we are in for a downturn. Over the past few months we’ve gone from a sharp decline to a rebound, but what is next?
Here is a quote from an article published this week by the Associated Press (click here to read the article):
Bank of America Corp. polled 1,000 business owners and found that their expectations for economic growth fell by nearly half from a survey taken last fall. Just under 30 percent expect the national economy to improve over the next year, down from 56 percent with that view in a survey last fall. Many owners said the election is a reason why they're less optimistic. Fifty-five percent said the election is affecting their outlook.
The negativity from this election has been worse than is typical. Election years are usually good for the economy. Will this change with the next turn in the campaign – the conventions? What is a business owner to do? Can one nominee at a political convention affect the economy quickly? There is usually some lag time that allows for the drastic ups and downs to level out. Don’t panic yet.
What business owners need is a wider perspective and more data points in order to make good decisions. What are other industries or markets seeing? How are they growing in the current economy? What are other business owners doing right now? Sometimes the best business ideas come from outside of your industry – adapting something that works well elsewhere. For example, right now the buzz is to become the Uber of your industry – disruptive technology.
This is where a well-run Mastermind Group is so helpful. A good one will have an experienced Business Advisor and a group of business owners from other industries who know your business, are committed to one another, and can give you some perspective. This allows for better decision making. You owe it to yourself, your employees and your family to make the best decisions, and doing it all on your own is difficult and stressful. Use the Mastermind Group communication forum to shape your company’s direction. Ask about my Mastermind group to see if it's a good fit for you and your business.