When Ends Don’t Meet

Everyone these days seem to be walking around with their head really low trying to ride out the storm that has engulfed us. This is the worst economic state India has been in; some say the worst in 40 years. Warehouses stocked with export quality produce and no buyers. Property; god forbid; is becoming “kind off” affordable in some parts of the city. People are loosing their jobs. And the people that actually get hit the worst are business owners; contrary to what people think.

There comes a time in every entrepreneur’s career at least once where he wont be able to make his payments, salaries and will be living on borrowed time. No matter how big or small your conglomerate you will face this situation and hopefully it will only be that one time. Sometimes it’s the economy, sometimes it your own stupidity (yes we all make mistakes) and sometimes you are trying to get a new venture of the road and that eats into your savings.

So how would one “hedge” for something like this?

1.     Plan for a rainy day: At any given point in time you should have enough money in your account to comfortably survive at least six months should things go south. This gives you time to think rationally and not have a knee jerk reaction to an otherwise salvageable situation.

2.     Action Plan B: Plan A failed. Ok. Time to move on to Plan B. We always get into something with a contingency plan. If you don’t. Start. This will help you make light of an otherwise grim situation.

3.     See the Light: What goes up must come down and vice versa. Know that everything is cyclical and this too shall pass. All you need to do is find a way to survive and ride out the storm. Ways to do this is focus on your core competence, put new projects, which require a large investment on the back burner and don’t over extend your resources and yourself. Be smart about hiring, interns work wonderfully instead of a full time employees.  

4.     Don’t put all your eggs in one basket: Seth Godin said this in one of his interviews, “the idea is to play just the right amount so that you can come back a second time and play again. Going all in isn’t a good idea.” The size of your hand will depend on how deep your pockets are so play wisely.

5.     Trust: Be honest with your employees. The ones that are loyal and believe in you will stand by you through thick and thin. Most times it’s the unexpected ones.

You think that being a business owner and a start up that it’s a lonesome road and sometimes yes it is. But more often than not your employees, family and friends come to rescue. Phone calls will be made, favours will be called in and all their efforts under your guidance will make mountain move.

So turn that frown upside down and remember

……….. Smile, Breathe and Go Slowly…………….