DreamMaker NewsMakers
The Benifits of Adversity
January 2007
Doug Dwyer, Contributing Editor
Professional Remodeler Magazine
One of the best teachers we can ever have is a time of adversity. It is not pleasant to go through short term adversity and it is definitely not when it’s long term. Like the old saying says, “No pain, no gain” is often referred to with sports. Well, it applies to business men and women in the remodeling industry as well. It is a truth in life and business.
Business adversity comes for many reasons. It could be from your market shifting, a major change in staff, technology needs, product innovations, new-better and/or more competition, not hitting growth and profit objectives, the need to restructure your company, too much debt service, wearing too many hats, trying to do too many things at one time or trying to be everything to everyone, etc. My guess is that one or more of these hits reasons hits home with you and your company’s situation. With all that has happened in our country over the last five years and with housing slowing down, thus remodeling is becoming more of a moderate climate, and with winter here, opportunities for adversity are at a peak for many of you.
Some years ago, I faced a very difficult time in my business career. We changed the name of our company and expanded our services. We borrowed a considerable amount of capital to make these major changes. Right after that, my top sales person decided to get married and move, which left me with two inexperienced sales people in the middle of a difficult transition. With so much of my time needed on the innovation of the new change over, I could not focus on sales to the level needed. So, it was a catch 22. It was going to be difficult no matter which way I turned.
The result is that sales suffered and more capital was needed to pay for engineering in the company. After leaving the bank and going to grab some lunch, it hit me like a ton of bricks. We cannot afford to continue to burn money at this pace. I was faced with having to take an extremely hard look at the numbers from a dollars and cents standpoint. The only realistic solution, given all the circumstances, was to downsize the company by one third of the staff.
If you have ever experienced this, or anything close to this, it is a difficult place to find yourself. But, when faced with a challenge of this magnitude, you can either let it crush you or decide to make the best decision you can and move forward.
I learned many lessons from this adversity. 1.) Even with the best plans, some things are unpredictable and to grow, you have to take risk. 2.) The numbers don’t lie. 3.) We grow tremendously through adversity and I would not know what I know today without it. 4.) A business person will have to make difficult decisions as a leader. 5.) Many of the people let go during the downsizing were actually holding the company back for many different reasons. 6.) You can accomplish more with a smaller team committed to the growth and change needed for the company to succeed. 7.) You have to believe and have faith it will work.
It is critical to have a support group in business and when dealing with adversity. It could be made up of a business coach, business owner, peer group, experts in the industry, family, or team members. There is a proverb that states, “He that seeks many counselors is wise.” Managing our own attitudes during the ups and downs of our ever changing world and business environment is one of our most important jobs. The right attitude creates consistent positive movement forward.
Significant growth comes through adversity…embrace it by accepting it when it comes. Learn from it, but don’t beat yourself up over it. Make needed changes and help others facing it. It is not easy or fun, but at some level, it is inevitable and will come. Be prepared and capitalize on the benefits it produces for you, your business and others.
