I have been observing more and more business owners who, although their businesses have survived the economic downturn, seem to be losing heart.
The stress and strain caused by these difficult times has worn on them. But doing business in today’s economy requires a steady hand, a sharp eye and most of all — a calm mind. There are four steps that can be taken to help to cope with the emotional toll of being an entrepreneur in difficult times.
First, adjust your expectations. The growth in revenues and profits that you experienced during the good times may not return for quite some time, if ever.
Don’t burden your business with unrealistic profit goals. It is time to reset your personal budgets to reflect the new reality of what your business can generate for you in terms of income. Also, be patient and understand that it will probably take longer for you to get to retirement.
Creating wealth from your business will be a longer process that will take careful management and planning.
Second, celebrate each small step forward. Set short-term, realistic milestones for your business. What can you get done this week, this month, to make modest improvements in the performance of your business?
While you still may have big dreams for your business, take the time to enjoy the smaller accomplishments. For over time, it is those small victories that will lead to achieving your long-term goals.
Third, focus on the things that really matter. There is so much more to your life than your business. Work hard at being a good spouse. Strive to become a better parent.
Pay attention to your friends. Be a good citizen in your community. These are the things that ultimately define who you are as a person, not how big you can grow your business.
Finally, let go of the things outside your control. Even under the best of times, entrepreneurs who have been well trained in what it takes to start and grow a successful business still face about a 20 percent failure rate. Failure comes from many things that you cannot predict or plan for. Call it uncertainty, call it risk, or call it plain old bad luck.
The reality of 2010 is that entrepreneurs face much tougher odds. Nationally, the prolonged recession has led to skyrocketing business failure rates. And Nashville small-business owners face the added pressures created by the recent floods. For years, I have put a prayer on the syllabus for every entrepreneurship class I teach. It reads:
“God, grant me the serenity to accept the things I cannot change,
the courage to change the things I can,
and the wisdom to know the difference.”
It is known by many as the “Serenity Prayer,” but I like to call it the “Entrepreneur’s Prayer” as it helps entrepreneurs remember that the best course is to focus on those things that they can control.
While times may be tough, it’s still possible to truly enjoy the entrepreneurial journey.
(This post ran as a column this week in the Tennessean).
All of this makes right now is the perfect time to buy a small to midsize business. This economy has left a whole lot of businesses out there selling for less than their worth due to people being discouraged just like this excellent blog post implies. Now is the time for people who want the most out of life to grasp on and take the plunge.
Anyone interested in the buying of a business should check out The Business Buyer Advocate blog at http://www.businessbuyeradvocate.com/ . It is a great blog full of must have knowledge for anyone thinking about taking the plunge. It’s frequented by quite a few experts in various aspects of the field that can help you with any questions you might have or perspective you might need.
Buying a business very well could be the most important decision you ever make in your life. You have to make sure you buy the right business the right way.
If you are on the other side of the fence and looking to sell a business or just want to get the other perspective check out their sister blog The Business Seller Advocate at http://www.businessselleradvocate.com/
As an entrepreneur myself and CEO of a company, I specifically agree with celebrating each small step forward. Send out motivational emails, seek out the employee who accomplished a goal that day, and spend time informing employees of the company’s business achievements even if they are modest. Although it is important to re-set expectations in this economy, creating a high morale and a positive atmosphere will always benefit you and your business in the long run.
Andrea, The LaSalle Network
I believe learning to let go will benefit entrepreneurs emotionally – alleviation of stress from being control freak, having peace of mind that will lead to an inspired individual. Part of letting go is an acceptance that things will not always work well. There is a time for success and there is also a time for failure. Our attitude in dealing with our failure matters.
It is very interesting to read the posting with clearly listed steps for entrepreneurs. I think that every entrepreneur must know and take them if he wants to survive in this tough period.I believe that if at least some of the entrepreneurs listen to your advices and start with adjusting their expectations, their businesses would be saved. Celebrating every accomplishment is something that could help everyone to feel self-fulfilled. At the same time, unrealistic plans are a “great” source that will put entrepreneurs in front of many obstacles and maybe failure. As you pointed out in your article, entrepreneurs have to set “short-term, realistic millstones” for their businesses. I think that it will be very helpful for all entrepreneurs to have a list of your suggestions and keep them in mind.
Maya Angelova , MACC student