The Coming Small Business Boom…
I just read an article by By Scott Anderson, Director and Senior Economist, Wells Fargo Securities.
Usually big time ECONOMISTS just don’t have much to say about small business that a small business owner would believe. But this guy gets us. Big Time.
Among the relevant things he said were the following comments:
“The Wells Fargo/Gallup Small Business sentiment index hit a record low in the third quarter of 2010, as small businesses continued to struggle to grow revenues and manage their financial condition.
Their future expectations plunged in the third quarter and many reported scaling back on hiring and capital spending plans over the coming year. Anecdotally, many remain uncertain about the economy, bank credit, taxes, and healthcare expenses, and thus do not feel comfortable aggressively expanding their businesses.
Small businesses historically have created almost half of all net new jobs in the United States, so their lack of participation at this stage of recovery is a big deal.”
The condition of small businesses is a Very Big Deal and Mr. Anderson has plainly stated why:
1. Small businesses create AT LEAST one half of all new jobs.
2. Small businesses are scaling back because they are concerned about the coming tax increases to small businesses, the increase in the cost of health insurance, the lack of available financing, and the chance the economy will tank, again.
3. Small businesses are struggling and as long as they do the economy will hang from a cliff.
If Small businesses are not hiring, and they are not, then who is? According to Mr. Anderson,
“…this recovery is already the mother of all jobless recoveries, and many of the jobs created over the last year, being temporary in nature, could disappear as quickly as they were created.”
The jobs that have been created have been “temporary.” Mr. Anderson went on to say, “employment declined by 8.4 million jobs and the U.S. unemployment rate peaked at 10.1%, and increase of 5.7 percentage points from May of 2007.”
If small business is responsible for one half of all new jobs created, historically, and small business is not creating new jobs, then it follows that any recovery is going to be jobless.
If you are unemployed, this is not good news. It sounds so impersonal, unless you are unemployed. Then it IS personal, very personal.
So….Stop Looking For A Job.
Let me say that another way. Chances are the job you got layed off from still needs to be done, by someone. Why not you?
You have skills and importantly you have insider knowledge about what could be improved in your former industry. So why not take that knowledge and start your own business?
We are working with a new client who is doing just that. Is she scared to death? You bet. But she is surrounding herself with advisers and helpers who will guide her along the way.
The personal solution to the jobless recovery is to recover from being an employee and get out there and build, buy or start your own business. What have you got to lose? Chances are you have already been looking for that invisible job long enough.
If your business is what they call B2B, (business to business), then we can even show you how to get your business to pay its own way. We can show you how to buy competitors out of cash flows.
If you want to meet other like minded folks…well, you now who we are.
Brenda Standlee
