Black Friday and Cyber Monday, according to the media, were a huge success. People spent more money than last year, so we must be on the “long awaited economic mend”. The stock market went up over 400 points today, another sure sign that the bad times are gone. Europe was just bailed out by the US along with many other countries making money available. Surely, now must be the time to pull out all the stops and spend all our reserves and everything we can borrow to invest in our business.
2012 is an important election year and efforts are going to be made, true or not, to show that the overall economy is getting better. My concern is that we are building a house of cards which may fall at any time. The “up and down” movements in the stock market, the unemployed rate which is still very high, the discontent shown by people who want more hand outs, the tension between world nations and a real estate market which is not showing an improvement all point to a necessity for business owners to play it safe.
Yes, I am an advocate for growth and believe that small businesses have a tremendous opportunity to not only survive, but to prosper. The term I use is “calculated risk”, invest and market for growth, but hedge your business by maintaining the proper reserves.
A long term business plan that sits on a shelf is now more useless then ever. A strategic focus plan should be implemented for all the areas of your business and should be reviewed and updated every three months.
I believe that every right implies responsibility; every opportunity, an obligation; every possession, a duty
Nick J. Petra