The standard view with respect to small business and how to act during economic downturns is to work harder, under the assumption that doing so will help turn things around. It’s a point hard to argue. Work harder, think creatively…all of that makes sense. Or does it? It may just be a fast track to burnout.
We know that severe stress reactions, and learned helplessness tend to occur when one is responsible for something, but in effect, has little control over that very outcome. That makes sense, since the individual in such a situation is “expected” to solve the problem, but is powerless to do so.
Of course, the small business owner has more than expectations operating here. There’s a business reality, and an issue of economic survival, increasing the pressure and stress.
Here’s a contrarian view. If certain conditions are met (see below), and the factors that have caused your small business to be cut in an ebbing tide, maybe it’s time to do less. Or even to take a vacation.
The rationale is simple. If it’s the economy, stupid that is accounting for a overwhelming proportion of your difficulties, and you cannot control the economy, is it better to struggle around the fringes of your business for minimal returns financially, or is it better to cultivate the mindset that you need to ride out the storm, and position yourself for when the economy turns around?
It’s an interesting thought. Obviously such a tactic will not work for everyone, or even many small business, particularly those that have fixed overhead costs. A small retailer paying rent, utilities, salaries and so on, can’t be “content” to ride out a storm that may last far longer than the retailer’s financial resources. However, if your business conforms to most or all of the following, then consider that the best time for a vacation may be when you presence has little positive impact due to the broader economy.
- Low fixed overhead costs.
- 95% confidence that your problems are caused by the economy (ie. out of your control)
- Certainty that you will not be able to make substantial impact on sales, revenue, etc.
- Tendency for high stress levels.
- Financial situation = good with substantial financial reserves.
- No obvious negative impact on remaining business levels from being partially or completely “on vacation”
- You will be able to enjoy more time off and not obsess about business.
It turns out that our business fits these criteria, and I’m considering whether we should just take some additional time off. I’ll keep you updated.
Comments?
