Hanging In and Helping

Times are tough. If it wasn’t official before, it is now. My business Blue Flavor has lost a few good gigs recently due to tight times and while we’re doing ok and hanging in there, we’re also feeling the crunch. I’ve also seen a few good small businesses fail in the last few months, despite fairly the aggressive measures taken to keep them afloat. And, unlike the big American car companies, there’s no government bailout coming for most of us either. We just have to preserver and play by the rules of the market.

Some of us will fall…

I don’t want to be a pessimist, but it’s clear that many a good small business is going to fail in the coming months. It’s not pretty, but it is what it is. My thinking is that we need to just keep soldiering on, doing the best work we can do, making adjustments to preserve cash-flow and not let hype and fear drive our decision-making. One thing I’ve been wary of is letting my talent go. I’d hate to survive the downturn just to have to start over rebuilding my team. To that end I’m doing everything I can to hold on to my people, because, let’s face it, they are my company.

Be helpful

Another thing I think is important; small businesses should be looking to help each other if they’re able. By “helping” I mean not only direct help; using each other’s services, passing along leads, etc. but also indirect help; positive vibes, being ethical, playing by the rules, being fair, etc.

I recently booked a cooking class only to find out that a few weeks later the company giving it had gone under. They were doing their best to give refunds to each student with a forthcoming class, but it was clear that this was hard to do and was also having an effect on another business the owners were trying to keep afloat. Being sympathetic, I chose to forgo my refund in the hope that it might help keep another small business afloat.

No fear

One thing I’d advice against is fear-based business tactics that can hurt your industry. For example, we recently battled another small design business for a client. That business chose to break some of the typical rules of our industry by engaging in spec work (if you’re unfamiliar with spec work, look here). We’re not sure if we’ll win that business or not (although we presented a good case as to why spec work isn’t good for anyone, including a potential client) but it showed me that some businesses are willing to do anything to save themselves, no matter the harm it might cause.

You might argue that all is fair in a tough economy, but… well, I disagree. If you’re running your business scared and making all your decisions by fear I think you’re doing it wrong, regardless of the economic situation. I know I didn’t start a business just to survive and get by. This will pass. It might take awhile, but it will and I want to be right with my business and myself when it does. I’d rather go down fighting for what’s right than bend a bunch of rules just to get by.

The Bottom Line

The best course of action is to hang tight and keep an eye open for opportunities that should arise during troubled times. Don’t let fear and uncertainty rule you. Acknowledge it and move on. At the same time small businesses need to stick together and keep an eye out of each other. Those that make it through will be stronger for it and we’re going to need each other to make it through alright.