The economic roller coaster of 2009 can be likened to an Indiana Jones plot. Small business owners, like Indy, mapped out the territory and did research, fought hard to save important artifacts, and then led people to safety. Like all Indiana Jones movies, the ending is happy and there is a consensus among business owners that things will, in time, improve.
As we cross the threshold from 2009 to 2010, the specific analogy that comes to my mind is the scene where Indy is being chased by an angry mob across a deep and wide ravine filled with hungry crocs waiting below for one slip of the foot. As Indy sprints to the middle of the bridge, yet another angry mob appears on the other side of the bridge to greet him --- and this is where we business owners find ourselves, on a rickety suspension bridge with the mobs closing in on us. Remember what Indy did? He anchored himself to the bridge and cut the main supports and eventually climbed out.
There are many Dr. Joneses out there crossing the bridge that all face similar challenges. Below is a compilation of thoughts on the 2009 economy and what’s in store for us in 2010. Remember, if you are lucky enough to make it to the bridge then you will probably make it out alive. Just keep the Indiana Jones triumphant theme music handy to keep you motivated.
Question: What did you do/learn in 2009 and was the recession this year as difficult as you thought that it would be? Thoughts on 2010?
Answer 1
After much review and discussion, the consensus for the organization was to downsize staff and save precious dollars for operational and program expenses. All excess and non-essential expenses were cut; there was little to cut.
With smarter work, determination, fortitude and small steps we can begin to reach our goals, however, patience must prevail. We reevaluated our position as to pricing our products, held the line on some - cut others where we could - and rolled back an annual registration fee for repeat clients for a short period of time, thanking them for their business. We continue to offer only quality; yet, attempt to make our client relations even better.
We also believe there is no fast or easy fix to the financial debacle facing us - this will not turn around easily. And, so each day we approach the business looking for new and better ways to generate and jumpstart business.
2010? Ever so slowly, the marketplace will begin to settle down, yet, we will continue to pay lots of attention to the little details to ensure any small success is never taken for granted.
Carolyn Clarke,
Community Music School
Answer 2
I knew the economy was in bad shape and on life support going into 2009. I felt that the Federal Government took the necessary steps that were needed to help large businesses and I also felt that small businesses were not high on their priority list. After all, small businesses are what is going to turn our economy around. I did learn a lot from what has happened. The most important thing is decide what is a need and what is a want for my business. I am also much more conservative with spending and I do not to rush into anything until doing my homework.
2010 will be the turnaround year, as long as we do not get anymore surprises from Wall Street or Washington. The credit market is getting better slowly and lending is loosening slightly. It will be a slow climb out of the problems that we have and I do see more and more people applying for small business loans with the SBA. We have seen our greatest increase in the last 3 months of 2009 for new loan applications for small businesses and expect 2010 to be the Year of Small Business loans.
Answer 3
The big takeaway from 2009 for many was recognizing the shift in the market and having a product or service to take advantage of the emerging trend. This was most evident in the food and beverage industry, where a shift in consumer spending was present across the board. Traditional table service restaurants saw much of their lunch market evaporate to pressures on worker’s pocket books and concern over leaving their office for casual lunches. The two martini lunch has long been gone, but now table service dining has been replaced by fast service outlets like Panera Bread, Salad Works and your corner deli. These cafeteria style restaurants are flourishing in the shift economy as patrons look to save as much as 30% by not paying gratuity and other overhead costs.
Access to credit made doing business in 2009 harder than most people anticipated. The woes the banking industry faced in the fall of 2008 especially impacted the tourism industry because of its many seasonal and weather dependent attractions. Lack of access to credit, increased interest rates and in some cases cancelling of existing credit cards hampered any opportunity for recovery.
Strike three came as the state budget impasse lasted late into the fall and the subsequent cut in funding to many community based organizations, non-profits and tourism initiatives froze spending programs for most of the year.
Gregg Marzano
Rainmakers Lehigh Valley
Answer 4
I believe the recession this year was not as bad as it seemed or some of the greater media led us to believe.
For businesses such as mine, it was a golden opportunity for marketing and obtaining new clients. Of course, this depends on the stability of your company/ the services you offer. We are in a unique position to work for a company in the financial field with no sub prime exposure, amazing leadership, and that did not have to lay anyone off but took other measures to grow and expand as we have in our own practice.
As for 2010 we believe we are on the cusp of more great opportunities to come for small businesses to control their own fate and grow in the future.
Anonymous financial professional
Answer 5
Based on the predictions and how tight the credit was becoming, we concentrated on our cash flow more than usual and worked really hard on our receivables to hopefully stay ahead. In addition we kicked off a very aggressive marketing plan to reach our current customer based as well as new ones. So far the year has been flat with a light up, but I’ve heard that ‘flat is the new up!’ We think 2010 is going to be slightly better.
Victor Salicetti
AmericaVen, LLC.
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