The Good News Won’t Quit, So Why Haven’t You? Howard Bassuk Okay...so you think you’re pretty smart, right? And you have wanted to go into business for yourself for a very long time, true? And you did feel that taking the plunge while we were mired in recession didn’t make sense to you, correct? So you sat smugly in your chair, waiting for that magical, mystical moment that would be the perfect time for you to start your own business. You should be proud of yourself. You showed good thinking, admirable restraint, and a cool clear logic about when you wanted to finally give yourself a shot at true independence. So, can I ask you a question? How come you’re not in business right now? You probably can remember some of the other times in your life when you knew you should have seized opportunity, but instead, failed to act. You’ve often reminded yourself that if only you ‘d have followed your instincts and bought stock in Microsoft, or bought that regional development deal from Mail Boxes Etc. you might be a multi-millionaire today! We all know people, who though no smarter than ourselves seem to have had some magical insight that enabled them to act at “just the right time”. Today they are the independent successful people that we all want to be. On the other hand, maybe that “magical insight” was nothing more than good sound business logic. Have you sat down and asked yourself, what would make today the “ideal” time to seize control of your life and enter the world of business ownership? Have you logically analyzed today’s business climate to see if it is the right time for you to join other successful business owners? What would be on your list? Finding the right business, to be sure, but what else? A booming economy? Low interest rates to help you finance your purchase? High consumer confidence so that buyers are willing to spend money? Low unemployment so that people are making money and spending it on services? How about rising personal incomes, and stable or decreasing taxes? If you think about it for just a minute, something exciting happens. You realize that every single item on your list is present in today’s vibrant economy! Most of us know that the best time to go into business is when the economy is robust, unemployment low, and consumer confidence high. However, many people who would love to own a business, have not yet realized how good a time this is to fulfill their dream! For the first time in a long time, the business community and the consumer are both strongly positive about the economy, and about the future. Does all this mean that now is a great time for you to consider business ownership? I think the answer is YES! Doesn’t it make sense that if you start your business when people are buying more, you will realize a benefit too? How good is today’s economy and business climate? It may be the best we’ve had in decades! An Associated Press front page report in the May 31, 1997 San Diego Union Tribune, spelled out the facts convincingly. The article said, “Economic growth skyrocketed during the first three months of the year at the most rapid rate in a decade”. “The good news just won’t quit” said Vice President Al Gore. He cited previous reports showing low unemployment, high consumer confidence, and growing incomes. And, even though the article pointed out that the growth was so robust it was not likely to continue at such an accelerated pace, things still continue to look rosy for the future. The article pointed out why the reasons to be optimistic were so strong. “The gross domestic product--the total of all goods and services produced in the United States--expanded at a 5.8 percent seasonally adjusted annual rate in the first quarter, even higher than an earlier estimate of 5.6 percent, from the Commerce department.” And the good news just keeps on coming. Earlier in the week, the Conference Board, a highly respected business source, noted that consumer confidence had reached its highest level in 28 years! Doesn’t that say it all! We are in the midst of the fastest growing economy in a decade, combined with the highest level of consumer confidence in nearly 30 years. What more could you want? Right now could be one of those “magical” moments when you should follow your instincts and go into business for yourself. So, the rush to get into business must be on, right? Surprisingly, for a lot of people that does not seem to be the case. Some franchisors, and other business experts have pointed out that exactly the opposite is occurring! They point out that prospective buyers are harder to find. Some scratch their heads and wonder what is going on. According to Challenger, Gray & Christmas, a highly respected national firm specializing in outplaced personnel, (people who have lost their jobs) the number of outplaced people who are considering business ownership has dropped dramatically. Previously, 11.1% of outplaced individuals were considering business ownership. Their most recent report showed the number had shriveled to an anemic 5.1%, the lowest level since 1984! What in the world is going on? Can it really be true that fewer people want to own their own business at the very time when being in business makes the most sense? Small investors sometimes are the last ones to realize when the window of opportunity is open. They may not join a bull market until it has already achieved most of its growth. They may not see a recession coming until its already well underway. Similarly, they may not recognize the opportunity to be part of a major economic expansion until it is very late. The small investor doesn’t have the resources of larger companies, or wealthier individuals, so they miss out on certain opportunities. Typically, in life we are motivated to do things because of one of two stimuli. We are either seeking to get more pleasure, or we are seeking to move away from and avoid situations that are painful. During the early 90’s, many buyers were employing a “pain relief” strategy. They bought businesses to get away from the pain of corporate downsizing, and to eliminate the uncertainty that surrounded a recession ridden economy. This “away from” strategy means people were moving away from pain. That is clearly why fewer outplaced individuals are buying businesses today, despite a better business climate than at the height of the recession. Instead of owning, they opt to go back to work for someone else. Getting a job is a quick way to stop the pain caused by being unemployed. However, those same people may find themselves rudely awakened the next time the economy gets soft. Unfortunately, they will also find that they have lost valuable time by not acting sooner. That’s where the other philosophy of life takes over. This other philosophy is to move towards pleasure. Whether that pleasure comes from the independence you get from business ownership, the security that business ownership can provide, the recognition that business owners enjoy, or the freedom that you get from working for yourself differs from person to person. It is this philosophy that should be pushing people forward now. The time certainly is right! Most business owners will tell you that once they’ve experienced working for themselves they would never want to work for someone else again. Investors can also take advantage of today’s great economy using a strategy that combines “towards pleasure and away from pain”. They are building now for the future they want tomorrow. They are preventing future pain by creating security today. Although corporate down-sizing has slowed, and the recession is a fading memory, many people know that both will resurface sooner or later. If and when that happens, these people want to be well established in their own businesses. That is a particularly smart philosophy! Today’s good business climate makes starting a business a good idea for other reasons too. In good times, more people are buying things, so it can take less time to launch a business and have it achieve profitability. Emotionally, the hardest part of opening a business is the start-up phase. The shorter the start-up phase, the easier it will be for you emotionally. I’m not trying to say that you shouldn’t buy a business during a recession. Many businesses do very well during both good times and bad. But more do better in good times! Even if you are perfectly content with your job today, you may want to invest in a business now, so that you can start to plan for your future security. News report after news report has stated that many Americans do not feel they will be able to retire in the style that they need based on their current economic realities. They simply won’t have enough savings, social security, pensions, etc., to sustain their quality of life. Once again, today’s business climate offers an excellent solution. Owning a business not only provides a tangible asset, it can also provide dynamic ongoing cash flow. And because many franchises, once built, can be run effectively with absentee management, they can be the perfect solution to cash flow needs when you get ready to retire. Although these businesses can be hard to find, there are franchises that can be started without you having to leave your current job! That possibility offers today’s smart investor a golden opportunity to build for the future without giving up the security of a good job. If you have ever wanted to own something, to build your own empire, create your own independence, secure your own future, own your personal dream, now might be the ideal time to survey the opportunities that exist and make your move! You will still need to exercise caution, do extensive research into any business you are interested in purchasing, and be frank in assessing your own personal skills and risk tolerance. Having done so, you can take advantage of this booming economy to begin your own business ownership. It is perhaps the highest type of irony that many people who want to own their own business wait until the worst possible time to purchase one. Everyone knows that more people buy things when times are good, than when times are bad, yet it seems that for many people it takes being outplaced or downsized during a recession to finally make the decision to declare their independence and become business owners. Doesn’t it make more sense to do the opposite, and get into business when the climate is most favorable for your success? If the good news just won’t quit, maybe it’s the right time for you to quit instead!