Small Business Optimism historically low - What should you do?

The Nation Federation of Independent Business (NFIB) Index of Small Business Optimism came in at 94.4. A reading of 94.4 is historically low and consistent with the sub-par performance of GDP and employment growth ... In the last year, small-business optimism has limped along, and today the sector is no better off than it was just over a year ago,” said NFIB Chief Economist William Dunkelberg. “The lack of progress is discouraging, producing no signs that economic activity will pick up this year at all. 1.

With no certain sign that economic activity will pick up, how should a business position itself to be successful in this environment? Business owners should make specific plans to address the following areas: Vision, Customers and Efficiencies.

Vision -as a country we continue to grasp for green shoots that will foretell an economic turnaround. Unfortunately the continuing mediocre news discounts the possibility of any significant recovery. Owners must present a vision, primarily for the benefit of their employees, that is encouraging, directive, and supportive. In proverbs 29: 18 it states, "Where there is no vision, the people perish." The same is true with our employees. Owners must inspire courage that there is a successful future just over the horizon. In addition they must provide the direction for the company that employees can see, understand, and implement. Owners must also express their understanding for the employees’ economic well-being since it has been so significantly altered over the last several years.

Customers -owners must be sensitive to the needs of their customers. Lean concepts are built on two major tenants, one of which is "only provide products and services that your customer values." Owners must take the time to make sure that they are chatting with their customers and determining what the customers’ needs are.

Efficiencies -the second major tenant of lean concepts is a "relentless identification and elimination of waste." Since we have not turned the corner in this economic malaise, owners must train their employees on ways to identify and eliminate waste. They also must inculcate waste removal into the very fiber of the organization.
When all is said and done, this is the time for owners to step up and provide the leadership to help their company and employees be successful in uncertain times.

©2012 Jim Lindell - Thorsten Consulting Group, Inc.

1. “Small-Business Optimism Index Stagnates: No Progress Made for Small-Business Sector in May | NFIB”, n.d. http://www.nfib.com/press-media/press-media-item?cmsid=60346.