Business people continually need to look forward, accept reality and strategize a growth future.
Admittedly, today it’s pretty hard to look forward with anything like eager anticipation, as we did for much of the last 10 years. I have never felt as uneasy about the future. But getting out of a self-analyzing, blue funk and into a positive, action-taking mode is really the only way to move ahead, isn’t it?
Let’s face it: It Is What It Is. So now what?
Well, what does, “It Is What It Is” mean in this economic situation. Regardless of your political leanings the die is cast for a significant shift in the way we will see our country run over the next four or eight years, or even more. So given the increasing role of government in the market economy, how do you plan to position your company, and more importantly your attitude?
It is interesting to note how a pragmatic outlook has influenced the positions taken by business-related organizations such as the National Association of Manufacturers, the United States Chamber of Commerce, and the National Federation of Independent Business. They are all, to one degree or another, on board with the Obama administration in its efforts to restore the economy. And why not? There seems to be no other source of repair. (Although sometimes a patient may recover almost as fast without excessive treatment if simply allowed to rest for a period of time.)
Other than the dangerous Employee Free Choice Act, which is patently unfair to business, most of the actions built into the stimulus package are not anti-business, and thus can yield some benefits. Of course a lot of the money will go into peculiar activities that seem to have little to do with fostering economic recovery.
It is depressing to think about how much of the stimulus money will be skimmed off as it flows down the pipeline. Bureaucrats will specify all kinds of administrative requirements requiring more government employees and while this actually can add or save jobs, it also contributes towards reaching the tipping point, e.g. that time when a majority of people receive government largesse and they then can control the vote, and will extract more and more entitlement payments from the minority who are the ones creating the Gross National Product. But fortunately that time is a ways off, and may never happen.
So what about your attitude? Griping and yearning for the good old days is over. Your teenagers will grow up more frugal; they will never have it as good as you did when you were in your early earning years. And you will need to remain frugal, too, for an extended time. In fact, the standard of living may well shift down a notch or two in the USA. It can hurt and it can be humbling. But in the end we need to learn how to save for purchases, and not to buy things on credit betting that future earnings will cover the debt payments. We have seen where that attitude towards consumption has gotten the country.
Your attitude needs to be pragmatic. You cannot snipe at the Obama administration. You cannot join the party of “no” because it is not an effective way to influence government. You can, however, take the steps you believe in as a citizen of this, the greatest country and still the most successful free market in the world. Send reasoned opinions to your state and federal legislators. Too few people take time to contact their elected officials. That means that a personal message, not a form letter, will carry weight with your senator or representative. They know that if you took time to write, there are a large number of people with the same opinion who did not write.
You can pay close attention to the flow of the money and find the ways to get your share of the economic boost. Probably most businesses will see the effect of the stimulus second or third hand. You may, for instance, supply services or products to some other business that is supplying services or products to some entity that actually benefits from the stimulus money directly. You probably need to follow the business news closely to see what companies win government contracts and then figure out how your business can help that winning company succeed.
You can maintain a sense of humor and balance in your dealings with employees and customers. Regrettably, the President does not display much of a sense of humor or optimism. His approach publicly has been extremely serious, probably befitting the situation. But this has made many feel like there is nothing but gloom and doom about the land. Then that attitude feeds on itself to create more gloom and doom. The press seems to play this game well, too. This economic malaise will eventually pass. Soon there will be a light at the end of the tunnel. Except that when we come out of the tunnel the landscape will be different from what we were looking at when we went into the tunnel. It Is What It Is. Sorry.
You can educate your employees by both talking and by example. You need to make sure your business is wisely using cash and when borrowing is doing so with due care for how the money will be used to generate a return that pays the debt back promptly. For employees you can make sure they understand your cautious attitude towards debt and particularly credit cards. To the greatest extent possible, credit cards should be paid off ASAP, hopefully monthly. Encourage your employees to do this; you do this, too. And everyone should be living on a budget that they monitor regularly.
It Is What It Is. Like it or not, the world is different. It is probably not possible to stop this fast moving train leading to more government interference in the free market. While you may grimace at the thought, perhaps it is better to hop on for a while, and see where it will take you. After a time, the train will slow and you can hop off. In the meantime we might as well enjoy the scenery along the way!
