Dear Aunty B,
I can’t believe it. Everywhere I go I hear talk about the recovery. But here is what happened to me last week…
Get creditors report that shows we are going to get 10 cents in the dollar back from a huge bad debt, that’s wiped out half my profit for ‘09.
Get another letter asking to extend payment terms.
Get a big bill from my lawyer for chasing bad debts.
Wait every day last week for a cheque in the mail and cheques not in the mail.
Staff member turns up with the flu and we sent him home but we are now all waiting to get it.
Sales team gets only three inquiries.
My son gets tackled at rugby and ends up with a broken arm.
Two escapees: my crazy cat and my demented father in law (he reappeared but the cat hasn’t yet).
I am not sure what I am asking except to point out that it sure doesn’t feel like a recovery. I am feeling that it is all a bit hard.
Louise
Dear Louise,
Hmm… The same thing happened in the 1990s recession. The last bit of the downturn when the share market picked up and the media started writing all this positive fluff was the worst time for lots of SMEs.
But it won’t get any worse. I promise. And here are five reasons why things are going to get better.
1. Demand will start to pick up. I note that your business is in B2B. Inventories are low and need to be refilled before Christmas which will be good for your business. So expect more inquiries and meanwhile come up with some short term strategies.
2. Cash flow is shite. But in most cases you will get your money so just stay on the case.
3. You haven’t got flu so why worry about it?
4. Your son can’t break any more limbs in the foreseeable future until his arm is out of plaster and sport resumes.
5. The cat will come back and normal crazy, demented life will resume.
What you must do now is get together with your mentors and friends and seek their reassurance. Talk to those who went through the 1990s in your industry to reassure yourself things will get better.
And stay healthy! Go to the gym, go for walks, have a long weekend in the country.
You are going to last the distance and that will be a competitive advantage!
Good luck,
Your Aunty B
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