What is incredibly frustrating for business today is not that the owners are not working hard enough, bringing in enough revenue, or not being intelligent enough about their spending….its that their financial backbone of support has been torn away.
Unfortunately the press bombards us with stories of companies like Woolworths and highlight them as ‘victims’ of the ‘credit crunch’, but on looking closely what you will find is that these businesses that have ‘sadly’ had to close their doors after X hundred years of trading…are quite frankly: badly modelled and badly operated by today’s business standards.
Consumerism is so sophisticated, fickle and judgemental nowadays, that if you, as a business owner are not savvy enough and smart enough to move with what your customers’ wants and desires are…then you will go one way: DOWN. Sorry Woolies, but as nostalgic as your brand was, that wasn’t enough to move you into surviving the next 100 years.
My point though…is that off the back of a climate created by the failure of the financial institutions – previously successful businesses that were fantastic, managed superbly and have a viable product/service that is desired and people are willing to pay for …have lost one of their most valued resources: a bank manager that is supportive and caring.
I would love to really know who is milking the system now? There is always someone isn’t there? Isn’t that why the whole sophisticated 1st world country’s financial system broke down – someone milked too much somewhere and the cow fell over and died.
I am meeting more and more small businesses who are becoming hugely stumped in their growth plans…because although they have had many years of a great track record with their banks…they are being turned away point blank. Isn’t there supposed to be a focus on investing in business, creating more jobs, improving spending and getting the economy back on track?