Mary Schmidt Marketing Troubleshooter

Recently over lunch a client of mine said, “You know - and it’s not just my business - small business is really hard. Why is that, do you think?” Well, me pass up an opportunity to climb on the soapbox? Not likely. So, here’s what we kicked around.

1. Despite all the patronizing political lip service - the U.S. isn’t designed to be small business friendly - from federal regulations to local taxes. People (even those who should know better) tend to still think of business in terms of the old “What’s good for GM is good for the country” and act accordingly. The trouble is, most companies aren’t GM (that is - the old powerhouse GM); they’re little guys working to pay the bills, put the kids through college and somehow meet payroll for Joe, Sue and Bob, who in turn are supporting families. And, they can’t afford to buy their way out of governmental controls, move offshore to avoid paying taxes, or raid the pension plan (what pension plan?) to cover operating expenses.

2. “They’re not business people.” My client offered this observation about small biz failures/burn-outs and I agreed. In my travels, I often meet new business owners and start-ups. They’re enthusiastic, with a shine in the eyes and on their biz cards. Unfortunately, they’ve not thought about: a. How to do ongoing financial management (Cash is king.); b. Their competition (There is going to be more every day and they’re not standing still.); c. Their potential customers (Can they sell to somebody besides their friends and family?)

3. Wrong Place, Wrong Time, Wrong Decision. Some people start businesses for all the wrong reasons. “I want to be the boss,” “I want to be able to take Friday afternoons off whenever I want” “I want to make a LOT of money!” “I hate my job.” I’ve heard all of these. Nothing wrong with taking time off (I play hooky on occasion myself) or making money. But, in start-up mode, you’re going to be working very, very long hours and the money may not come for years. And, even if you hate your job, that doesn’t automatically mean you’re psychologically or financially cut out to be an entrepreneur. For one thing, those steady paychecks will cease. If you don’t work and produce results - you don’t eat.

4. We need a different definition of success. There’s a lot of burn-out among small business owners. One reason is our society’s general definition of success. Somehow, if you’re not making a bazillion dollars a year, you don’t count and that’s just depressing. But, hey, wait a minute! Millions of small businesses (and sole proprietors) across the nation are buying real estate, putting food on the table and doing things like serving on non-profit boards and paying for their kids’ college educations. Seems to me that standing on your own two feet, supporting a family, supporting your community, and contributing dollars to the economy should be counted as a “success.”

Related Posts:
So, People Don’t Like You.
You can’t handle the truth!
Passion doesn’t equal profit.
Start Up, Throw Up, Grow Up
I want to be the boss!
Small is a state of mind.
Let’s get small! (Or, Size does matter.)

Tags: business development, entrepreneurs, entrepreneur sanity check