Why are brick and mortar stores closing? What’s going on? What’s changing? Why are CEOs earning 500-700 times the salary of most other employees, especially when they aren’t able to keep their companies in business?
Part of the reason just might be priorities. Sometime around 1970 the focus changed from building business relationships and sharing with the wealth with employees to maximizing the stock price. The product, whether it was cars, clothing, or other goods, while a concern, was less important than the stock price.
Another reason is borrowing. Most companies are not able to meet their day-to-day expenses without some form of borrowed cash, which they then have to pay back. The result is a cut, slice and dice mentality that usually manifests around Christmas (a joyous occasion enhanced by the fact you’ve just been let go.)
As some old friends from Vegas used to say “Hey, its only business, ya understand.”
Running a small business has many of the same challenges. The benefit is fun. Its more fun to work hard at building and sustaining a customer base, developing a relationship within the community and experiencing the rewards, personal, professional and financial of your efforts.
When the company can be started debt-free and, through effective money management, kept debt-free its possible to keep the business open and competitive during times of (inevitable) economic readjustments. It may even be possible to acquire customers from those companies that downsize or close. Believe or not, its small businesses that are the economic glue that keeps the economy humming. People like you and me selling products and services to our friends and neighbors.
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