A lot of economic indicators, including the stock market, GDP measurements and some consumer confidence polls, are telling us that the economy is beginning to turn around. With that said, you can't overlook the fact that the unemployment rate, even though we know it is a lagging indicator, is still high. Some are even looking at some pretty strange non-traditional indicators to help determine where the economy stands; 19% more homes grew their own vegetables in 2009 versus 2008, liposuction procedures were down 19% compared to last year and the dry cleaning industry has taken a hit with people wearing clothes longer in order to cut costs. I know it sounds odd, but those numbers say a lot about what Americans are really thinking.
 
The dismal jobs report issued on October 2, 2009 had a lot of implications.  First, the official unemployment number at 9.8% is getting even closer to 10%. When we actually reach 10%, it will be like when the Dow dropped below 10,000 and kept falling. Second, the "real" unemployment number is even higher, more like 17%, when you include those who have depleted their benefits and have dropped off the screen. Finally, there are many self-employed sole proprietors with their own businesses who are struggling but do not qualify for unemployment insurance, so those numbers are not included in the statistics. Taking all of this into consideration, some estimates then put under-employment and unemployment at close to a staggering 24%.
 
But, if you own or manage a business, you shouldn't ignore the other signs that tell us that there is actually room to grow in today's economy. Instead of focusing on surviving, we're going to have to get back into some risk-taking. My partner, Mary Adams, and I have a book coming out in 2010 entitled Intangible Capital: Putting Knowledge to Work in the 21st Century Organization.  We believe that there are incredible opportunities for American business today. Challenges around energy use, sustainability, health care, transportation and education will create opportunities in almost every industry. In order to take advantage of these opportunities, business owners need to start thinking today about how their business can leverage these opportunities in the future.
 

Everyone in your company is reading the same newspapers you are - they know that things are still tough out there. Many of your employees probably have family or friends that are unemployed. Seeing so much uncertainty, many employees may not have the enthusiasm for taking on the job of innovation. So, how can you change this mindset inside your company?
 
To get your team focused on the future, you'll need to change the message a little bit. One of the best sources of ideas that your company can use to turn things around in a dismal environment appeared in Inc. Magazine in February.   Following are some of the excellent bits of advice successful business owners gave that you can use to point your company in the right direction:
 

The Paradox of Choice - Why More is Less
By Barry Schwartz
 
Last month I attended a great conference in Wentworth-by-the-Sea, New Hampshire hosted by investment bankers Bigelow and Company. We were all assigned to read, The Paradox of Choice: Why More is Less.

The book presents a lot of good observations about how consumers are simply overwhelmed by choices.  Supermarkets offer hundreds of brands of crackers, 401-K decisions are endless and health care options are numerous. Schwartz analyzes how the overwhelmed consumer will often choose to make no decision when faced with this avalanche of choices.
 
From the book I learned that I am not a "maximizer", one who has to look at all the options available and then making sure they select the very best. For maximizers, this process often leads to second-guessing and uncertainty because the decision may not in fact identify the very best. As it turns out, I am a "satsificer".  That is, I set a goal or objective and when I find a selection of a service or product that meets my standard I make my decision. This feels like it makes life simpler in these complicated times.
 
If you are looking for a good book with interesting insights, I recommend you check this one out.  

On Thursday morning, October 22, at the Regus Conference Center in Wellesley Hills, MA the Exit Planning Exchange (XPX) Content and Curriculum Committee will host a live, interactive Exit Planning Case Study and Training Class. Bonnie Carson DiMatteo, founder of Atlantic Consultants, and John Leonetti, author of Exiting Your Business, Protecting Your Wealth and founder of Pinnacle Equity Solutions, will co-host.  This exercise in exit planning calls for group participation and exercises to help you learn to prepare a business owner for their eventual exit. Limited to 30 attendees.

On Wednesday evening, November 18, at the Charlestown, MA offices of XPX's Platinum sponsor Caturano and Company, Caturano partners will speak on tax and financial issues affecting businesses, owners and exits in the middle market. Networking will precede and follow the presentation.
 
For more information or to register for these events, please visit the events page of the Exit Planing Exchange the events page of the Exit Planning Exchange
 
Finally, on a personal note, I ran my first marathon in Baltimore on Saturday, Oct. 10.  I did a lot of my training in the muggy weather of August, including three runs of 20+ miles. I ran the marathon with two friends and finished in 4:37. Woohoo!

Trek works with owner-managed businesses to develop action plans for growth. Trek also works with the owners to prepare for their successful exit by coordinating the resources necessary to increase and preserve the firm's value, creating the succession plan and assembling the right transaction team, financing and post-transaction plan.

Our clients report improved market focus, greater revenues, better margins and increased profits. To learn more about Trek Consulting and how we can help you improve your company's results, visit us on the web at www.trekconsulting.com or call us at 781.729.1008.