Knowing When You Are In The Rabbit Hole

I am ever the optimist.  I believe markets are cyclical and the recession we are in is a necessary evil.  Like a forest fire clearing the way for a stronger re-birth.  And, as much as any business can be, creative businesses, especially those related to the wedding industry, are insulated from the full brunt of the downturn.  People are still going to get married.  But, while the spigot may not be off, I am sure it has slowed — to a trickle for some of you.

In these times, even the best businesses will likely have to make some incredibly painful and tough decisions.  From reducing your overhead to thinking about shutting down.  My advice is that you have to act, but not overreact.  If you are fortunate enough to be getting business, then your analysis should begin with what you have.  Focus in on what type of business it is, what it will take to produce it and how to grow this area of the business.  Assuming your selling season will remain, if you haven't been through it yet, then assign a very low increase in that business — not more than 15%.  If the selling season has passed, assume what you have is what you are going to get.  Then take all of your emotion away (easier said than done) and structure you business to break even (including your salary — you need to eat — no martyrdom please).  Everything else needs to go away.  Today.  Even if you are in the middle of a project, investing in something new, in the process of expansion.  It all stops.

I have seen too many entreprenneurs panic when the business slows — try anything and everything to keep what they have and, in the process, lose it all.

By making the best of what you have, you will be around to take advantage of all that will come when the economy rebounds.  Just don't go too far.  You can't do it all and losing the structure you have created will, by definition, limit you in the long run.  Losing key employees or other assets should be your last resort — not only do you need them to keep going, but to be able to handle the upturn when it comes.  Now, more than ever, once you ensure your survival, your focus should be about promoting and growing the brand.  Letting everyone know who and what your business is all about and that you are to be trusted to be all that you are and more.

If you are in the unfortunate place of not being able to make it, no matter what you do, then please don't chase the proverbial rabbit.  Sorry to tell you that it can get worse and you can get in deeper.  Sometimes dreams need to be put on hold until the time is right that they can be fulfilled.  Chasing the rabbit will make it that much harder, if not impossible, when the time is right.  There is no shame in self-preservation.