All businesses experience ups and downs. This is the nature of business and the fundamental science behind how the economy operates. It can be tempting to focus solely on the highs, positive results, and future opportunities. However, how owners and leaders manage adversity determines the resilience and longevity of the business.
Owning and running a business requires courage and is not for the faint of heart. Small business owners invest their entire lives into their ventures, including, but not limited to, their time, money, and mental focus. Those committed for the long haul do what is necessary to protect and care for their teams, do right by their clients, and nurture and safeguard what they have built. For founders especially, their businesses are like children they have guided from infancy, making selfless sacrifices to support their development for the benefit of the organization and all those it impacts.
Betting on Success
For an owner, the day-to-day management of a business can be likened to being a professional sports gambler. With each day and every decision, business owners and leaders are betting on themselves and their team to deliver value for their investment. While the best professional gamblers may win only 53% of the time to be successful, businesses require a higher win rate to cover costs, reward their team, maintain reserves, reinvest for future needs, and achieve profitability to see a return on their investment.
While non-business owners may rely on financial accounts or other vehicles to build wealth, most small business owners have the majority of their assets tied up in their business. Therefore, the need for profitability impacts not only the business and its team members but also the personal well-being of the owners and their family's future.
Business owners understand the importance of committing to do what it takes to keep their business running.
The AV industry offers ample opportunities for entrepreneurship. Whether as a sole proprietor or by building a team, skilled AV professionals who take the leap into self-employment leverage their confidence in their knowledge and skill sets, along with their unique perspective on delivering services and solutions.
What many may not realize when establishing themselves is that achieving success in business involves more than being a skilled technical professional and producing quality work. Running a business requires a distinct set of skills, knowledge, and abilities that may not come intuitively to a highly technical expert. This includes self-belief, as well as making critical decisions, taking risks, and sometimes going against the grain to pursue opportunities that others might overlook (or doubt exist).
Some businesses start with a full head of steam, capitalizing on an innovative idea or addressing a need with pent-up demand. Other businesses build momentum with each successful outcome and gradually develop a loyal following that requires a two-way commitment.
While businesses seek relationships and loyalty from their clients for future opportunities, there is an equal responsibility that businesses have to take care of their clients when they need them. This includes meeting tight deadlines, working on projects that may not be ideal, or prioritizing their clients' needs when a crisis arises. In each case, the business must serve its clients, even if it means sacrificing its own interests to build trust and solidify a long-term relationship.
Navigating the Natural Cycle
Once the initial excitement and honeymoon phase pass, businesses must confront the reality of daily operations, where challenges develop and surprises are commonplace. Whether it’s a project going awry, a team member failing to meet expectations, a client needing priority support, or someone leaving for another opportunity, transitioning from riding the wave of success to facing adversity serves as a wake-up call that distinguishes between a business that is sustainable long-term and one with only temporary achievements.
Every business experiences natural cycles during which it must navigate changes in costs, talent availability, funding accessibility, client needs and spending, pricing fluctuations, and demand for services. Similar to the seasons of the year, businesses follow a natural seasonal pattern.
There are seasons of prosperity (summer) when a business profits, replenishes reserves, and invests in future infrastructure. There are also seasons of hardship (winter) when businesses struggle to cover costs and must therefore conserve and be cautious with spending, risk-taking, and investments in infrastructure or new growth areas. This is where reserves, credit lines, and established relationships are crucial for maintaining stability and overcoming adversity.
Between these highs and lows are seasons of transition (spring and fall) where growth or regression loom on the horizon. Navigating through each season is inevitable and an inescapable part of business. Successfully managing this requires the ability to identify the current season, determine how to adapt to it, and predict when the next season will arrive and how to prepare for it.
Decisions or Destiny?
It's when the going gets tough, whether enduring a difficult season or navigating unfortunate circumstances, that the commitment and perseverance of business owners and stakeholders are put to the test. As a defining aspect of their role, business owners understand the importance of committing to do what it takes to keep their business running.
This means making difficult decisions regarding costs, personnel, or investments, taking on debt by bootstrapping with their personal funds or relying on family members or investors for support, and achieving more with less by balancing various roles and working tirelessly to strengthen the business. Many business owners go so far as to forgo paychecks during slow periods when their priority is to keep their team employed, care for their clients, and meet their financial commitments.
It may seem that business owners possess power and control over their own destiny, but the reality can be quite different. All businesses face daily struggles, and small business owners are just one bad decision or challenging situation away from jeopardizing what they have built. The mental strength of business owners is constantly tested as they navigate the uncertainty of the business landscape, always needing to think strategically, adapt to change, and anticipate the unexpected.
It's easy to become enchanted by the highs that being in business can provide. Whether the preferred phrase is “crazy busy" or "slammed with work," both highlight undeniable success.
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It is important to understand that such outcomes don't come easily and should never be taken for granted because they don't last forever. Business owners who recognize that the seasons will eventually change and possess the focus, fortitude, and foresight to prepare their businesses to adapt and persevere through unsettled times will once again have the opportunity to benefit from a prosperous season.
