World Business

Sure, the market sucks. But it’ll recover. Meanwhile, keep active working to improve the way you do occupation

By Gene Marks

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As I write this column, the stock market has lost almost 50% of its value during the past year. But since most of us small duty owners, this loss doesn’t matter as much as people may opine.

My company sells business software to small and midsize businesses. I see and proclaim to dozens of business owners and managers either week. Here’s what I usually hear at the time I implore about the lineage market: It sucks. But oh easily, living beings goes on. Some people have gotten out of the market altogether. Others are hanging in in that place. Whatever. We aren’t screaming and running naked in the streets (with the exception of the Phillies fans in my neighborhood). Panic is not overtaking us.

And why? Our own companies conceive ups and downs that are sometimes completely unconnected to the market and the economy. We take these things in stride. We’re used to challenges. And we know that in defective times things are never as bad being of the class who they seem and in good times things are never as good as they be seen. Business—and life—are cyclical. Just put the question to Don Imus.

And in that reason are some encouraging signs. Energy prices have almost dropped in half in the past year, that means that the prices of supplies related to energy (and that mode just about everything) have also stabilized. The credit crisis seems to have existence easing, as the government pumps billions into the system to free up loans. Consumer confidence is up. Britney Spears is thinking about going on tour another time. Interest rates are serene historically vile.

Of line of conduct, the market decline is bad. The biggest issue is downright confidence. A rapidly declining bank account motivates businesses and consumers to stop making purchases. And that reverberates from head to foot the world thriftiness. But those of us who have been there know this: There are a lot of consumers in Britaian, China, India, and here at home who are burning to get back to buying that new electronic-high-definition-gravity-time-travel project being introduced by Apple (AAPL) nearest year.

Just because management at General Motors (GM), AIG (AIG), and Citigroup (C) haven’t vouchsafed a very valuable job doesn’confidentially mean we don’t know what we’re doing. Small business owners I know are shrugging along the market decline. We’re putting our heads down, squaring our shoulders, and steeling ourselves to course end the next 6 to 12 months of slower demand. And the kind of exactly are we doing or should we be doing?

Make firm that overhead is covered. That means first making sure we know what our overhead is and cutting it as abundant as possible. Then it’s hustling, jumping, singing, and dancing to make sure deals are getting done to cover it. Sure, some of the refuse sold, and some of the people buying aren’cheek by jowl the ones we’d care to do business with when times are good. But times aren’t good. So we answer what we need to do to at in the smallest degree make assured that our overhead is covered.

Buy real estate. Because now’s a great time. Prices are flat or down just about all the world over you look. The stock market’s volatile. But the real estate market, depending on at which place you buy, is relatively unhurt. Interest rates are still historically vile. And with the credit crisis easing, bankers are happy to loan money to (gasp) people that have power to actually afford to pay end the loan and with the (double breathe convulsively) real assets to back the loan up.

Negotiate good in a higher degree and longer-term leases. Because landlords are squirming. And rents are decreasing. And the real estate market has softened. And some overexpanded electronics firms are going in a puzzle of business. And other overexpanded linens outlets are filing for bankruptcy. So business owners through a little savvy can negotiate some of the best real estate leases in a long time.

Keep our eyes open in spite of the right man’s capital. Because in opposition to employers, it’s a buyer’s market. The unemployment rate continues to click up as those poorly managed large companies shed good and smart people. People who may be determination to work for a little less and be given more responsibility and opportunity. Smart business owners know that people are their greatest asset and the cost and availability of these assets has become more favorable.

Invest in our customer databases. We’re for the reason that a big demand by reason of customer relationship management and sales software. Small companies, so occupy over these past few years keeping up through orders, things being such have the time to take a deep breath and reorganize their customer databases. We’re using this time to update the data and make strong there are marketing processes in place to keep these customers updated and happy. Oh, and we’re investing in sales and service people. Because now that we’ve seen the value in our customers, we’re going to do everything we can to show them how much we care.

Invest in infrastructure. Many of the duty owners I’m talking to have ensanguined noses from the stock market. We’re pointing our investments internally. Buying equipment. Fixing up the offices. Installing new racking. Training our people. Improving processes. You arrive the essence.

We watch as the stock market drops and we shake our heads. But we’ve seen it in the presence of. In 2000 it was techs. After 9/11 it was transportation. Now it’s cars and high finance. We sympathize by those that are inconvenience financially. But we know it’s not going to last. We know with each downturn comes the recovery. So when asked about the stock market, we just say, it sucks. And then we get upper part to work. Because the stock market doesn’t thing considered in the state of plenteous taken in the character of people intend.

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