Monday, September 10, 2007

I must admit, I find it puzzling and intriguing that so many long-term established downtown businesses are quitting, just as I'm having my best year ever. I've been mulling it over, and I think the answer is surprising, and somewhat counter-intuitive.

My expectations are really, really low.

That is, I spent so many years in debt, just hanging on, that I made the decision to stay in business long ago, that I would willpower my way through to the end no matter how hard, no matter how little money I made.

It may be a great, but stupid, argument to make your mistakes early and make them often.

I can't say for sure, but I'd be willing to bet that some of these other businesses actually extracted a profit out of the businesses for a number of years, that they have a bit of equity to fall back on, that kind of thing. Whereas, I was in debt for so long, and trying to run a business with one hand and one leg tied behind my back, that for me it seems smooth and clear after the debt is gone, and I can actually order the way I want and need.

Still not making a whole bunch of money, but mostly keeping out of debt and paying the bills on time.

Keeping out of debt and paying the bills on time. Nirvana.

So the extra foot traffic downtown is beneficial to my business. Because I was in debt for so long, I've kept my overhead to a minimum. I've learned to maximize my product, to diversify, to -- in essence, butcher that buffalo, and use the meat, the bone, and the gristle. I've become very very savvy because it was the only way to survive.

So this seems like smooth sailing to me.

Maybe not for long. Competition always lurks. See the post below about sea changes in industries, the constant changing of the technology and retail landscape. But I just find if fascinating that things are going well at a time when everyone else seems to be feeling a drag.

But I need to keep from being cocky: just because my head is above water for the moment, doesn't mean there isn't a big wave headed my way.....

1 comment:

Anonymous said...

My expectations are really, really low.
*
Not to scare your guy, but your in an optimum situation, lets talk Merenda 80+ warm body's, that is not survival.

Employees are what will kill you, at the very least in your case if you can carry your lease with savings, and layoff your employee you'll survive with ease, I say this with no lack of care for your employee, but only out of realism.

Too often business, people take on the appearance of business, and attractive employees, ... There are always cycles, times of good and times of bad, during times of bad, all non essential expense must go.

You may be the few that survive, given 29+ years, most likely the future will be NO worse than the past.