The newspapers are reporting increased business activity, and thus, everyone believes the recession is over and that we are returning to the time when things were so good.
It's not true.
It does not apply to the very small businesses that you represent-the $1-2 million dollar business with 15 or fewer employees-or even under $1 million in revenue and a half-dozen employees.
These are the small business owners I speak to every day.
These businesses are the real deal, the backbone of the country, and this is where the real damage is being done and recovery is an illusion.
As you all know, the statistics regarding recovery are focused on larger business operations that are easy to measure, have plenty of capital and are in control of much that happens around them.
These larger manufacturing, financial services, home-building businesses, etc.
, are easier to track and monitor and are, in many instances, reflecting small improvements.
However, this does not mean the same growth and development applies to small business as we know it.
It does not mean the recession is over and that we can all breathe again.
The small businesses we are talking to have lost their working capital and their credit lines, have maxed out their credit cards and their retained earnings are gone.
They held on to employees longer than they could afford to and have no capital left to emerge from the recession.
Additionally, the revenues are not returning quickly for this sector and even if it is demonstrating some increased activity, too much damage has been done to the small business owner to afford him an opportunity to grow and reap benefits of any uptick that may be going on.
This is where the real pain and suffering exists and this is where debt service is long in arrears.
There was insufficient capital available to carry their business during these lean times, and thus, even if there is an uptick, there is no capital available to take advantage, hire more, stock more, build more.
Further, their loans are in arrears with banks demanding more cash than they have.
What to do? Easy.
Follow the plan.
Downsize to make your business as small as possible, and yes, let as many employees go as needed to balance your profitability with your overhead and expenses.
Reinvent your business to be profitable under today's changing terms and conditions.
Then, do the workouts.
Your debt is the anchor around the throat of your business and it will choke you to death.
Things may be getting better for the moment.
I doubt it, but some report they are.
The long-term view still predicts much more trouble on the horizon for our economy and business environment.
Do not be lulled back into a sense of false security.
Continue to engineer the changes required to not only survive, but to once again prosper and grow.
It can be done, even in a downturn economy, if you follow the right path.
Downsize, reinvent, do the debt workouts.
Do it now.
Call us if you need some help, guidance or directions.
It's not true.
It does not apply to the very small businesses that you represent-the $1-2 million dollar business with 15 or fewer employees-or even under $1 million in revenue and a half-dozen employees.
These are the small business owners I speak to every day.
These businesses are the real deal, the backbone of the country, and this is where the real damage is being done and recovery is an illusion.
As you all know, the statistics regarding recovery are focused on larger business operations that are easy to measure, have plenty of capital and are in control of much that happens around them.
These larger manufacturing, financial services, home-building businesses, etc.
, are easier to track and monitor and are, in many instances, reflecting small improvements.
However, this does not mean the same growth and development applies to small business as we know it.
It does not mean the recession is over and that we can all breathe again.
The small businesses we are talking to have lost their working capital and their credit lines, have maxed out their credit cards and their retained earnings are gone.
They held on to employees longer than they could afford to and have no capital left to emerge from the recession.
Additionally, the revenues are not returning quickly for this sector and even if it is demonstrating some increased activity, too much damage has been done to the small business owner to afford him an opportunity to grow and reap benefits of any uptick that may be going on.
This is where the real pain and suffering exists and this is where debt service is long in arrears.
There was insufficient capital available to carry their business during these lean times, and thus, even if there is an uptick, there is no capital available to take advantage, hire more, stock more, build more.
Further, their loans are in arrears with banks demanding more cash than they have.
What to do? Easy.
Follow the plan.
Downsize to make your business as small as possible, and yes, let as many employees go as needed to balance your profitability with your overhead and expenses.
Reinvent your business to be profitable under today's changing terms and conditions.
Then, do the workouts.
Your debt is the anchor around the throat of your business and it will choke you to death.
Things may be getting better for the moment.
I doubt it, but some report they are.
The long-term view still predicts much more trouble on the horizon for our economy and business environment.
Do not be lulled back into a sense of false security.
Continue to engineer the changes required to not only survive, but to once again prosper and grow.
It can be done, even in a downturn economy, if you follow the right path.
Downsize, reinvent, do the debt workouts.
Do it now.
Call us if you need some help, guidance or directions.
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