Obama’s stimulus package and small businesses

Though it occured without a single republican vote, President Obama’s stimulus package (a.k.a. The American Recovery and Reinvestment Act of 2009) successfully passed its vote in the House yesterday.  Though it has yet to make its way through the Senate, where it may very well be altered to increase bipartisanship, it is widely expected that the core elements of this plan are now set to become law in the very near future.  At a length of 647 pages (the pdf is here), this is an itimidating read for anyone stretched for time.  But given that $819 billion dollars are on the line, it’s important to know where the money is going and who it’s going to benefit.  As a result, we’ve taken the initiative and thumbed through this document to identify how this stimulus package will help small business. 

The Process of Identifying and Launching New Products & Companies

The process of launching  a new product or company  is a discipline that anyone can learn and through repetition excel at.  There is a method to the madness.  As entrepreneurs and business owners, developing a competency in the process is one of our primary job functions.   If we want our respective companies to grow and withstand the tests of time, we must systematically build this discipline into our organizations.

There are two approaches to launching new products and companies. The first approach identifies an idea, validates the idea through market research, and then creates a business plan to make the idea a reality.  The entire process is “idea centric.”  The second approach (the one smbZen favors), begins with self-awareness.  It asks: (a) what are our, or our company’s traits and abilities, (b) our combined expertise and training, (c) who do we collectively know, and (d)  as a consequence of these three questions, what can we do?  This approach is entirely “people-centric.”

How to Repair Broken Employee Trust with an Apology

As any good manager knows, trust is harder to build than it is to lose, so it should be carefully protected.  However, even the best managers make a mistakes and do something that breaks an employee’s trust.  Sometimes it’s intentional and we later regret it.  Other times its unintentional and we may not even be aware of what’s occurred until it’s pointed out by someone else.  Regardless, rebuilding trust is a vital skill - perhaps it should be called an art - that can help resolve these situations.

Have no illusions: you cannot successfully rebuild trust without an apology.  While some might be tempted to wield authority and demand respect, a more successful tactic is to swallow a bit of pride and issue a sincere apology.  If done skillfully, an apology can repair even the most damaged relationships and lay a solid foundation for future positive associations between the parties.  At the very least, issuing an apology illustrates that you believe the relationship is valuable and worth continuing.  Of course, for it to be effective, both parties must share this belief.  If not, your efforts will fall on deaf ears (though if you’re really good, the apology can convince them otherwise).

In general, a successful apology takes responsibility for the action that broke the trust and employs empathy and sincerity.  But the best apologies have these additional elements:

Small Business Week In Review: 01/26/09

Former Secretary of the Treasury, Lawernce Summers, said the months ahead will be extremely challenging.  Credit is still frozen and most banks are technically insolvent.  According to a Bloomberg News survey, Gross Domestic Product (GDP) contracted at an annual rate of 5.5% between October 2008 and December 2008.   Some small business owners have started taking drastic action to cope with the conditions.

To cope, small business owners — from neighborhood plumbers to graphic design firms — are paying employee salaries before their own, trying to renegotiate leases and pleading for customers on neighborhood blogs. But despite their best efforts, the customers aren’t there.
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While falling sales and the credit crunch have made headlines, the small business owners left standing are facing problems as varied as the businesses they run. Manufacturing is slowing. Layoffs are looming. Financing is hard, if not impossible, to come by. Vendors are being skittish about extending credit for inventory. Rents are rising. And profits are falling — or vanishing altogether as sales slip.

Keeping Commitments, The Foundation For Trust In Business Relationships

Contrary to what most people believe, trust is not some soft, illustrative quality that you either have or you don’t rather trust is a pragmatic, tangible, actionable asset that you can create - much faster than you probably think possible. - Steven R. Covey,  author of The Speed of Trust, The One Thing That Changes Everything

Although we may strive to live by certain ideals, we’re not perfect.  Nobody is.  We often struggle with complicated situations personally and professionally.  Our intentions are  complex.  We are bound to make mistakes.  These mistakes, especially those related to trust can have far reaching consequences.  Fortunately, fostering and maintaining trust is also one of the easiest things to do (in my humble opinion).

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