Minimum wages up to $7.25, July 24. If that hurts, don’t worry, you won’t survive anyways.

The recession or downturn or meltdown, whatever you want to call it has been with us long enough for us to deduce a few basic observations and then to strategize accordingly. ‘The times they are a changin’, (Bob Dylan), and we must change too…or be left behind.

So here is the deal: Most of the small business owners I speak with are all suffering from declining revenues.From 15% to 60% loss of revenue. Impossible to deal with they say, but not so,  of course it can be dealt with, here is the recipe;

1. Downsize greater then you believe you need too.

2. Increase productivity with incentives, team org,  training, reviews, etc.

3.Workout debt, eliminate or drastically reduce.

4. Manage with a key indicator system.

5. Emphasize quality and the highest customer service

6. Be the most of something.

7. Force profitability with a pencil and eraser and then implement.

Failure to follow the above requirements renders you unprofitable and losing money and it will be just a matter of time before you are out of business, so what difference does it make if the minimum wage goes up ? No effect whatsoever. The real issue as every business owner must force profitability by practising the above strategies.

We can no longer rely on an ever growing   economy with  compulsive spending. supported by easy credit.

Now, small business owners must learn to make a bigger profit on lower gross  volume with increased expenses and costs of production, by doing their job more efficiently and effectively and thus yielding more out of less. That’s the path, that’s the answer in a declining economy.

Get smaller…get better….or perish. No room for sloppiness, ineptness, guesswork, lack of effective management. Only the good business managers will survive and many will expand again.

Which one are you? If the increase in minimum wages effects you, you are already in enough trouble. You are unlikely to survive much longer anyways, so don’t worry, it will all be over soon.

If you are losing money or even breaking even, if you are not taking a pay check, if you have no retained earnings, re-evaluate your management style and make the changes required to force and sustain profitable business. If it cannot perform adequately shut it down and re-apply the capital elsewhere.

For those who have made the downsize transition and tightened up their bsiness practises, systems and strategies, nice work…good job. Enjoy your success.