Stop Pretending the Economy is Getting Better

It is not getting better.

Stop waiting to make the necessary adjustments required for your long-term survival. What we have now is what we will have for a very long time. You cannot simply "wait for the clouds to pass." They are not going away. The economy is not going to get better for a long while.

• Unemployment rates will remain the same, with modest adjustments up or down (probably down) meaning fewer people will be spending, and those that are employed are spending less.
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• The real estate market is showing little change, with foreclosures continuing and the commercial real estate bubble next in line to burst. In other words, more downward pressure on the economy and spending. The trades are devastated because of the huge downturn of demand for new homes.
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• Cities and states are broke and the public unions are sapping the lifeblood out of the cities remaining reduced revenues.
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• Taxes will continue to rise, increasing overhead for the already crippled small business owner.
• Consumer purchasing attitudes are changing dramatically. People are buying less, wanting a good deal when purchasing and not squandering money on unnecessary wants.

The only prudent path to take--the only plan that makes sense--is to prepare for the worst and hope for the best. So, let us assume that the business conditions we have now are what we will have for a long while, and that they will possibly get even worse along the way in some areas and industries.

I hear far too many small business owners telling me that they are "hoping" things will get better. Hoping is fine, but acting as if things are going to get better, making that part of your plan, is not the way to go... at all.

If I am wrong, no harm done. You will be ready to take advantage of the upswing. If I am correct, you had best heed my advice and make the necessary adjustments now, before it is too late.

Downsize, re-invent your business model and do the loan workout! Debt kills... quickly.

Stop deluding yourself, believing your wishes will come true. Be practical and pragmatic. Do the loan workout now, before it is too late.

What if I am right?

Call us for help and direction. We will arrange a no obligation teleconference for us to review the strategies you need for survival.