Tough Economic Times

INCREDIBLE EVENTS
In 2001, New York , Pennsylvania and the Pentagon came under attack, and the folks there suffered deep personal losses. All of us, no matter where in the country we live, felt some degree of deep communal loss for them.

We were also all affected by a weakening economy and the serious down-turn in stock prices and valuesthat resulted from those confusing, "scary" times, compounded by the war on terrorism , the war in Iraq and Afghanistan, then the boom, bust & recovery of the stock market. Wow…what an incredible set of circumstances.

INVESTORS REACT 
The momentum of the economy was negatively affected, of course, by these multiple problems. Many folks, in all walks of life, decided to take a “wait & see” attitude about our country’s possible reactions to these events, and what direction it all might be taking us. Some investors decided to "hold on". Many others cashed in, "big time", and took profits or losses out of the stock market.

This extraction activity started long before 9-11-01, but it accelerated when those terrible events of 2001 happened, and again occurred during the 2008 downturn.

Other investors, millons of them, after 2001, re-entered the stock market, driving values to all-time highs. The same re-entry into equity investments is likely to happen when the 2009 recovery takes hold.

STOCK BROKERS, FINANCIAL ADVISORS & OTHER "EXPERTS"
Investors saw that the "guru’s" and supposed experts who had guided the 1990's and the 2002-2007 stock market "booms" had been almost universally wrong about the market’s predictability.

Virtually the entire spectrum of investments, both passive and active, varied widely during this period...from ridiculously low yields on C.D.’s and money markets, to dramatic dilutions of value in large caps, small caps, mid-caps and blue chips, with dramatic losses in just about every sector from 2000 to 2002, to new record highs being set in the stock market after 2003, and record setting lows happening again in 2008.

Most "experts" simply didn't accurately predict the trends, nor guide us competently. However, through it all, the returns on investment for small business owners (non public companies) continued to out-perform any other investment strategy, with rare exception.

Not only have most business owners enjoyed double digit ROI's on their invested capital, consistently, but also, most of them support their families out of their business profits, and generate excess cash flow as well.

AMERICANS "TAKING CARE OF BUSINESS", AS USUAL... 
The national political/sociological/economic events, especially the disasters and surprises, in a country with less substance and resolve, could have been even more devastating. Our citizens, on a grand scale, almost always have handled these adversities with unparalleled grace, strength, and common sense.

On an individual basis, most Americans are taking care of business daily; on their jobs, in their businesses, in their families, and in their communities.

In my 60-plus years, I cannot remember a time when there has been a greater sense of patriotism, support for our systems and lifestyle, and such dedicated resolve to conquer adversity.

Undoubtedly our parents and grandparents during The Great Depression and World Wars I and II were just as dedicated and strong. But they would, I’m sure, be the first to be proud of this generation’s handling of the current situations.

WHO KNOWS FIRST WHEN THINGS START TO "TURN AROUND"?
We business brokers have a head start over most professionals in seeing the advance stages of economic trends, including good news and bad.

We are truly on the "front lines" of the entrepreneurial dynamic, and are the first to know when business owners are more or less interested in selling, and when business buyers are more or less interested in buying.

We also spend much of our time counseling with bankers, lawyers and accountants, adding those experiences to the mix. All that gives us a unique perspective.

While we recognize the pain being experienced by folks who are unemployed, and business owners who are struggling, we also are right in the middle of the "main street" recoveries when they happen.

AND NOW, SOMETHING EXCITING IS GOING ON...
Even though we feel the economy is likely to continue to be relatively weak for awhile, we are now seeing strong signs of entrepreneurial excitement, energy, renewed stability and recovery, even though the headlines continue to feature the problems, not the re-bounds.

WHEN TIMES GET TOUGH, THE TOUGH GET GOING...
The tough times are not over, and may not ever be permanently gone. After all, though, it’s not "the times" that determine our destiny, it’s how we handle it that really matters.

The old saying "When times get tough, the tough get going" is truly applicable to the attitudes and activities of today’s business people. Just as risk takers have been doing for generations in the USA, millions of American small business entrepreneurs are once again coping with challenging times.

They are staying the course, leading the way back to prosperity, security and a bright future.

WHAT BUSINESS OWNERS COULD DO NEXT...
Business owners will be glad to know that, over our over 27 years of listing and selling small businesses, during which we've managed the sale of thousands of different businesses of all types, sizes, kinds and prices, there has always been a ready market for established business resales in good times or bad.

We've seen many different economic and political realities during that time, and decade after decade, American entrepreneurs still come forward in large numbers, looking for a business of their own to buy.

So, there's never been a shortage of ready, willing and able buyers for businesses in my many decades of involvement in small business brokering. That's true today, as well. For business owners who wish to "cash out", buyers are available.

WHAT BUSINESS BUYERS COULD DO NEXT...
As always, buyers need to do their homework, insist on adequate due diligence privileges when looking at businesses to buy, and make their interests conditional on all reasonable contingencies.

But, buyers will be glad to know that, regardless of economic or political events, so far, for decades, there are still plenty of good investments available for consideration.

Now is an opportune time to purchse a profitable business for a very attractive price, especially for buyers who are "corporate escapees" or "downsizers" and buyers who wish to leave their present job, or who are being nudged out of their present careers, and wish to "own their job" by owning a business.

And, there are plenty of businesses available to buy that are experiencing attractive cash flow during even these challenging times.

WHAT WE CAN DO...
Our network of premier business brokerage offices remain dedicated to helping business buyers and sellers "get where they want to be" financially and life-style wise. We continue to work hard, deliver a high level of professional, reliable services to all parties, volunteer to manage the acquisition financing, help with the due diligence, manage the attorney and accountant relationships, and professionally and effectively coordinate the many closing and take-over details.

And, we continue to provide these services on most transactions without charging any front fees to either party, but only get paid by the business owner a commission at closing when the business sells.

We are proud to join the entrepreneurial business buyers and sellers of America in partnerships that perpetuate and support the viability of  "The Great American Dream" of owning your own business, which still, even in tough times, remains strong, vigorous and a vital basic of our way of life.

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