Resolutions

It's New Year's Eve and I am certain that you have tons of resolutions that you are going to make or have made. Some of these resolutions likely involve your small business. After a particularly rocky year, I am sure that one of those resolutions is: make more money. I don't know of anyone, even the very wealthy, who had a bonanza year financially. Even the richest of the rich, guys like Kirk Kerkorian, Robert Tchenguiz and Adolf Merckl are practically going broke, losing billions of dollars of value in their portfolios by the day.

I could be wrong, but the battle cries of the recession has been universal - except maybe for hospitals, shrinks and people who work with the dead - they have really capitalized on the consequences of excess stress and financial shock, I would imagine. Yes, all indicators are the the country is in a recession (as are many countries across the globe) and 2009, according to the economists, pundits and their statistics, is not going to be a heck of a lot better - it may even get worse before it gets better. (Be still your heart!)

I think that one of the ways a small business owner can assure that 2009 is worse than 2008 is to adopt a doomsday attitude and to believe that it will get worse. Negative thinking is singularly the worse thing that can happen to a challenge. In order to succeed, one has to remain certain that one can overcome the core challenges that one faces. One has to stay positive. And focused. One has to resolve to master the challenges, to get on top of them, rather than have the challenges get on top of one.

As a small business person, one of my resolutions this year, 2009, is to remain optimistic. And like president-elect Barack Obama always says, I will adopt the mantra, "yes, I can."

What about you? What are your resolutions for your small business?

Thrift

In his book, SuperClass, The Global Power Elite and the world they are making, David Rothkopf describes Nelson D. Rockefeller thus: "More than anyone else, Rockefeller incarnated the capitalist revolution that followed the Civil War and transformed American life. He embodied all its virtues of thrift, self-reliance, hard work, and unflagging enterprise."

Rockefeller was also the richest American business man who ever lived. He begain in business around age 24 and through a series of inspired moves, transformed himself into a force for the federal government to be reckoned with with his creation of Standard Oil - a monster corporation that so monopolized the oil business, the Supreme Court had to step in and break the company into parts: Exxon, Mobile, Sun, Chevron and a few others.

What has this to do with small business owners? Well, it's just to remind ourselves that one of the ways Rockefeller rose so high and furiously, is through thrift. As Mao did in China, he "lived close to the land." He also believed in business - creating them and growing them into successes, in hard work and in self-reliance. What is a small business if not the enterprise of a self-reliant person who works hard? But maybe, in these days in particular, more small business owners ought to think more about their overall thriftiness.

Sure, cash is king these days. But I think Rockefeller would probably say, only spend when you absolutely have to. The economist will not agree with this approach, obviously. Because in order to get the economy going, consumers have to start spending and stop hoarding all their cash. And believe me, I am not an economist, so I am not delving too much into that. I am just talking about the idea of thrift and drawing on Rockefeller as a reference. Because, look where it got him?

Consequences

If nothing else, the recent upheavals on Wall Street have taught us that every act, even those done in secret and by really important people who are used to "getting away with murder" has consequences. And that eventually, the chickens will come home to roost.

I am certain that at least once since the story blew up around December 11, or so, that Bernie Madoff and his wife and sons have wished that they had not participated in that ponzi scheme. Now, they will lose everything. Including their freedom.

As a small business person, you may not have to worry about the consequences of ponzi schemes. But there are bound to be other ways in which you cut corners, cheat a little bit, try to get over from time to time. It is human nature to try to find the easiest and quickest way to get to a destination - especially when one is looking for money and profit.

But, when temptation knocks, just think of Mr. Madoff, and take the scenic route instead. You're a lot more likely to end up in a place where you can enjoy the fruits of your labor, rather than having breakfast meetings with law enforcement and the Federal Bureau of Investigation - or the like - as they hint at a lifetime behind bars in some federal prison somewhere.

As tough as it might be to get your show profitable, try to always "do the right thing."

Reorganization

When you hear the word "reorganization" you probably rightfully think of Chapter 11 bankruptcy, which is a section of the Federal Bankruptcy Code that usually pertains to businesss (although individuals can also file chapter 11).

But when I use the word "reorganization" I am speaking of something else. It is related, but it is not quite the same, because I am definitely not talking about you invoking any section of the bankruptcy code - unless you must.

But to reorganize means to basically start over, to try something different, for try a new way or idea with your business.

Sometimes that is not only a desirable thing, it is a necessary thing. Look at what Bernie Madoff did to all those big companies (and maybe some small ones too) on Wall Street. He basically bilked investors out of over $70 billion dollars of their hard earned money, through the use of a ponzi scheme.

You better believe that a lot of those people are going to have to reorganize. Many are left destitute with nothing and they are going to have to start from scratch - if they can. If they can't, they are finished. Life is over for them.

As a small business owner, there may be all sorts of reasons why you may find yourself having to start over. It could be an act of God, but it could be an act of man. It could even be from your own mistakes and missteps. It doesn't matter.

The trick is to recognize when you are at the point that reorganization is required. And act in a focused, controlled but expedient way, to make the necessary changes to get you from wherever you find yourself to where you need to be.

Power

What does "power" have to do with a small business owner? When one thinks of power, one thinks of multinational corporations and the men who head them. One thinks of political leaders, Terrorist leaders, International banking professionals and maybe even the Pope. But one does not necessarily think of a small business owner.

It is true that the average small business owner does not have the kind of clout that would get him a front seat at Davos next to, say, the chairman of the IMF, Bill Clinton, or even Angelina Jolie.

But I am willing to bet that within his own community, a small business owner does wield some power, perhaps a bit more than he or she even suspects.

What is power? Power is the ability to affect what happens to somebody else. If that is the simple definition, then I would argue that all small business owners have some degree of power.

But if you don't own it, what good is it to you? My advice is that all small business owners should think about what is the source of the power they wield. They should tap into it, use it when necessary. But never abuse it as, unlike greater institutions than yourselves, small businesses have such a high degree of replaceability and turnover.

lawsuits

Small businesses the world over are susceptible to lawsuits. But they can also be the plaintiffs who brings suits against others. For some people, lawsuits are a legitimate way to raise capital. For others, lawsuits buys time. And still others use the lawsuit as a PR strategy.

Getting sued also has its perks. When a small company in the Indian Ocean was recently sued by the first lady of France, they got millions of dollars worth of free publicity. And you know what they say about publicity.

What about you? Why do you sue?

Budgets

There is no question that budgets are dwindling for most people these days. It is something in the air. So small businesses as well as big businesses have to think about where and how to allocate their money. The one thing everybody seems to agree on these days is that cash is king and you can't be too liquid right now.

A small business owner has to think about where his/her money is best spend. But ultimately, into the foreseeable future, he or she is really going to be thinking about how to hold on to as much of it as he or she can.

The experts, some of them, will tell you not to worry about anything, to carry on business as usual. There is some wisdom in that strategy, sure. But the fact is, it is not business as usual. Something is happening. And while widespread panic is not something anybody needs right now, caution is definitely called for.

A small business owner needs to put together air tight budget right now, and streamline his business as much as possible without compromising "the appearance of" prosperity.

In the end, it's all about balance.

Soul

Does your small business have soul? It it memorable, energizing and has an upbeat tempo and rhythm? Do people care about it? Should they? Would they if they knew about it? And what about the flip side of "soul"? The moral compass. What are the values that drive your business? What is its code of ethics and behavior?

I tend to think that a business either has soul or it does not. But I could be wrong. Maybe a business with no soul can work on this problem and in some way and by some means inject soul into its veins. I don't know. What I do know is that without soul, a business will not have long term viability.

Iconoclast

Why should you run a hum drum business that follows the same old rules as everybody else, whether it be in how and where you obtain financing, which venture capitalists you pitch, how and where you market your business, and even how, where and to whom you peddle your products and services?

Dare to be different, one of a kind. In fact, it should be a goal and an aim. It doesn't matter what business you are in. Even conservative fields like investment banking, law and medicine can breed iconoclasm among certain individual firms and companies. I mean, the traditional lawyer may not write a blog. But why should you be a typical, or god forbid "traditional" lawyer. We do not live in traditional times and so every small business owner should be thinking about being more "iconic."

And really, isn't that what branding is all about?

Fitness

How fit is your small business? I would suggest that your business is only as fit as the people in charge. Like people, businesses can get sick. Some are even chronically sick. Just as people become lathargic, fat and unhealthy due to lack of exercise, so do businesses become unhealthy and unfit when the business does not sufficiently and regularly increase the energy levels of the business.

How can you "increase the energy levels" of your business? By investing time and (money if you have it?) into education, innovation, technology, marketing, greening, brand imaging and other similar workouts. Just like your gym workouts, your small business' heart pumping, sweat inducing, strength building workouts must be preceded by a warm up session, and concluded by a cool down period. That is just a fancy way of saying proceed cautiously as you embark on allocating capital. Know what needs the most work and create a triage. The goal is to get beyond the status quo. But in this economy, you have to get an okay from the "doctor" before you go full throttle into something, before you spend money in a certain area. Remember the ultimate goal: CUSTOMER SATISFACTION. What will get you there with the minimal pain and maxium gain?

Get the fire of Prometheus under your belly and give your inner mogul a workout. Start brainstorming about how to make your company as "fit" as it can be. A small business owner has to continually strive to move the business from one level to a higher level. That means you have to intensify the workout. Always think: Get to the next level. Do not remain static. But do things gradually to prevent "burn out" or injury.

By the way, what is your "Noodle score?" I was just reading about a new startup who, using Google like algorithms, can predict your "Noodle score." No, it has nothing to do with pasta. It is about using certain criterion to predict the "worth of your company." Have you heard of it? You should log on and input your info. Your company may be worth a cool million already. Hey, you never know.

Stress

What isn't under the stress these days? It seems that more than just the stock market is experiencing jitters and twitters. In fact, it is safe to say that most people seem a bit on edge.

There is good stress and bad stress. The stock market is having a bout of bad stress. The kind of stress that has made it seem slightly "unwell," as if it needs a good doctor to administer some antibiotics to sort of "disinfect" whatever is ailing it.

Small businesses (and their owners) can experience stress too. And the stress can also be good or bad. One of the stresses a small business might experience are: meeting legal obligations in a timely fashion (filing taxes, paying insurance, finding the right employees, meeting payroll, paying creditors, dealing with competitors, staying in the "black" and meeting the expectations of customers) when business is slow. Another big one is keeping the business in business.

As for the small business owners, they experience the human/personal stresses of keeping up with it all, both at work and at home. The thing with the small business owner stress is that bad stress can incapacitate a business person to the point that they can't function in their role as a business person. And many of these businesses are so small that without "YOU" there is no business.

So it is imperative that a small business owner manages and handles stress. Get enough sleep, eat well, exercise, practice relaxation, meditate, walk, go to the gym, take mini vacations, hang out with upbeat people. Or do whatever it is that helps you avoid going to your doctor's office with heart palpitations.

If a small business owner is managing his or her personal stress well, then he or she is likely to handle the stresses of the business with a lot more aplomb.

Attitude

When you hear the word attitude these days, most people probably think about the performance diva with sass as long as the Nile, ramping up the mojo/hubris/confidence/you-betta-not-mess-with-me-fore-I-smack-you vibe that makes even big linebackers rush to get out of her way. And maybe it is a good definition.

Except it is you, the small business owner, who is the diva, and you've got to be that way because you realize the wrong attititude will see you end up in the same place like Lehman Brothers, at the bottom of the sea, and you just can't afford to go there.

You realize you've got to be tough and strong as a small business person and if it kills you, you are going to deliver that attitude to your business. You realize you've got to have a boat load of confidence, that you have to be slightly self-absorbed. You've got to defy anybody to stop you from achieving the goals you've set for yourself and your little business. And their stupid obstacles? You realize you've got to be ready to kick those right out of your way and keep moving steadily towards your goals. And you intend to do just that, so help you god.

And yes, you realize the importance of staying positive. Especially in these times we are going through. How much easier it would be to lose faith. How much harder it is to persevere than to just say "fuck it."

Having the right attitude to achieve success takes focus and hard work. But make no mistake about it. If Dick Fuld and the other folks at Lehman had had the right attitude as that ship was sinking, Paulson may have been more bullish about a bailout. But rumor has it that they went into negotiations like dogs with their tails between their legs. They acted desperate, calling Paulson off the hook and he got spooked. They showed their fear. And the Feds went right out and bailed out AIG instead - because those boys went in smoking their cigars, as if they didn't have a care in the world...

The right attitude can make the difference between survival, and death, of your small business. I bet you Dick Fuld, in retrospect, would agree with you as he sits in his eight bedroom mansion in Greenwich, reminiscing about the good old days.