External Factors Effecting Small Business


All right, boys and girls, we're going to start doing all of our episodes in sign language here. It is a management and money and Rhino officially fired. So this is now the ryan-murray show. I'll see how well I fly solo Late Night with Ryan Murray song. That's out Saucy man, who Okay, welcome to an episode of marketing management and money ryan-murray. You need co-host for that and and a smoking-hot diva, which I get neither out of you. Ouch. So hurt so bad only because it's so true for those who actually want an episode today. What are we talking about aren't going to feel like I'm traveling about I know you are but I'm not I'm not ready to go there yet. All right, I mean to mess around just a little bit more. So you said you don't get neither of those things off. I'm a Diva man. I may not be smoking hot, but I'm definitely a diva. So at least you got that right? It's a bonus. So to Thursday is out there if anyone is interested, I'm looking for a new co-host if you know it according to his standards. You don't have to know a lot about business. Tryouts are also done yourself. Welcome back to another episode of marketing management and money. We are your hosts rhinestones. Awry Marie and we are definitely going to get mature now and start episode Giannis. We're off to start into the topic, which I think is is something that's on the minds of a lot of people especially in in times like these with economic downturn or what-have-you. Should I start a small business due to economic factors to other any other outside factors, right? These are things that we can't control and and whatnot. And how do those things play a role in our thoughts processes and in our our amount of courage or our our amount of risk aversion so that we're willing to take on more risk or less afraid or even if we are afraid we're like real crap. It's like I gotta do this wage. Yeah Hafner, even if I'm scared, you know, so so what are some of these factors let's why don't we kick it off there. We already mentioned the economic side of things. But so interesting that you picked this topic, you know, as we as we're trying to figure out Topics in your life. This has been on my mind. I want to talk about like that's great. How did just this last week? I got a referral for a small business that starting up off and it was someone that I knew that they were kind of helping this entrepreneur and you know, they knew they knew that I did this and so they reached out to me and there's like, hey, can you can you help my friend? They're getting ready to you know, they're getting ready to do a business. Can you just give a couple of pointers and sure and I'm like love to like this is what I do we could talk about this all day long happy to do it and not like I I felt like I was a little bit dated because they're like good they're right here. I love those scenarios like well, you might you have done if I said no choice your light halfway done with your lungs there like here talk to him right now. You got a mouthful of lasagna. So, you know the way that I kick it off with this with a. Potential entrepreneur is I'm like, all right, so it's in the midst of a pandemic everyone shutting down and you decided to open up right you either have a lot of courage or your stupid or it's a mix of both. They appreciated the humor. I'm like, I hopefully they don't take that the wrong way welcome to entrepreneurship but nobody's sure like behind every joke. There's a lot of truth. That's like honestly you either have a lot of courage or your stupid or a little bit of both. Yeah, and I want to talk about that stupidity factor of man when things when everything is pointing in the wrong direction, yeah, you know, like some people run the opposite way. Yeah. Everyone is running out of the burning building. Yeah, like that looks like good real estate. Right? Let's go check it out. So I'm going to I'm going to tweak your I agree wholeheartedly I can I get I get the direction that you're going and obviously this is coming from a joke, right? But we I think it's important to tweak the stupidity wage. Idol that you're giving us because I don't know that it's necessarily. I mean maybe this stupidity. I mean, I'm not a shining example of the opposite, but maybe we call it life. Turning a blind eye to to some of these factors. I don't know. I don't know what term you would put your going to be politically correct? I'm not because I have seen and I'm not trying a statically correct. I'm just trying to I don't think it's stupidity cuz it's stupidity to me if Plies like a lack of intelligence, right? Okay. It's a lack of intelligence. I think it's just ignoring some of these factors like it's almost like a Brazen Miss. Okay, and thank you for the clarification because that's a good clarification. But I want to put this out there entrepreneurs often times get very emotionally caught up in the moment. Oh, yeah now yeah, I want to be very clear. If you are overly logical that is not necessarily a success principle. Right? Like you have to have a balance of logic and emotion. We we are emotional creatures and anyone that thinks that oh, I'm only going to use data and I'm only going to use sign And I'm like, well first officer your life is incredibly boring and second. You're not always right, you know, like how often do you talk to yourself a lot you did you walked into that one bulb? That's okay. I'm here to spice up your life. Thank you a little bit of a diva. Okay. You're welcome. You mean the emotion I'll be the lodging. Okay till sweet home, right? That wasn't a compliment was it? Oh, it's just so anyway, when they get over emotional and a lot of times you'll see this in a start-up where someone's life. Oh, I've always wanted to do this. But often times you'll see this in existing businesses where you know, it's like do I expand or do I hunker down? Do I am I played a little bit smart and you know, I I picture a good poker player here where like you're you're looking at your hand sure and sometimes your Delta great hand and sometimes your dog. Crappy hand, but your goal is an entrepreneur is to play every hand. Yeah, consistent. Yeah, like your clients you make your clients feel like you're winning at every turn and in and on the inside, like if they could see the soft gooey internal guts of this thing. They'd be like, whoa. Yeah, you don't offer any confidence whatsoever. So so jumping back to this particular entrepreneur. She was launching a tanning salon. And you know, I flat-out said to her off your gutsy and she said well the area that I'm going into so she looked at the microeconomics. Okay, and she's like the area that I'm going into a claas do right now because of the housing market and there's some opportunity and she started to spelling these things out to me. I'm just like dang like you've done your homework wage. And I honestly think that this is a smart bet so even though everyone is, you know, they're folding in that, you know hypothetical poker game that I'm talking about. Yeah, you know, she's holding her card. She close to the chest and she she's making some calculated moves in in what she's doing. And so I look at this and I'm like, okay, you know in entrepreneurship your Delta hand wash and sometimes you know, that's Full House and sometimes that's a hi card. Yep. And and and so it's like how do you play that? And right now A lot of people are being dealt a hi card. Yeah. I don't shove a pair going on and you can still win if you play that hand correctly, right? So let's talk about that and off the first thing that I want to talk about. So I mentioned that micro economic Factor, you know, how big of a of a role does the economy the overall economy play a non-starter wage? Business, I mean right now unemployment is high. You know, everyone's GDP is down and when I say everyone I'm talking like an international level like countries are losing money, right? Well has you know evaporated in this pandemic. Is that a good time or a bad time to start a business? It depends sure and so looking at it as an entrepreneur, you know, you gotta be able to kind of read the signs understand what you're looking at. Are you walking in an opportunity or are you walking into a disaster? Yeah, and you gotta kind of check that that emotion that ego at the door for sure and say okay, you know, what are my trusted advisors telling me now when I say trusted advisors immediately you kind of picture the boardroom and it's like oh, well, you know you should do this George Washington. I'm talking, you know, Mahatma Gandhi, I find a successful entrepreneur take her to lunch and ask her some advice. Yeah. That's a trusted advisor right there. Yeah, right what you're saying, you know, she's been in business for the last twenty years what she saying about where the market is today? Yeah, and you know and then compare that to a couple other people, what are they saying, you know and just kind of kind of feed on this and you know and get get some outside perspective. Of to where you're in a position that you're like, okay. I'm not only going off of my own gut check. It's either inspiration or indigestion is what else to say? Yeah, exactly. Well and I think that that's a lot of entrepreneurs. Well a couple of things cuz you covered a lot of ground their holy I did I apologize I got right right behind it up let her life so it's like those chattering teeth, but you see with her feet and you wind him up when you're sitting here. You're like, how do I put this thing back together? That's kind of how long I'm like outside factors. Anyway, so I think that a lot of entrepreneurs who are successful entrepreneurs and she could essentially repeat their results, right? Sure to me make you can't be dumb and get their intellectually right on the other hand. I think you absolutely can laugh. Emotional intelligence and and have that intellect and make that happen. Right and and that alludes to the point of your your need for these these external advisers this advice Joe speaking in in these kinds of times whether that's economic or something along lines of like a personal crisis or you know, like a loss in the family these external things that you can't control. It's important to have bought this trusted Board of advisors and I think that that's one of the big takeaways that could come out of this episode is that having an ominous a a well-rounded group of trusted advisors because they want all of the same person. You don't want yourself six times over and and I really I'm glad that you you got on that because you know, I'm I'm I'm hearing in my mind confirmation bias, you know, if sure well if I see I see I already believe that my business is going to be successful and then I surround myself with people who are going to just agree wage. With me because they want to be agreeable. Yeah, so if your intellectual get a diva, apparently I'm seeking a job. So you guys needed even let me know but let's go ahead as long as you're going, you know, find someone who's going to challenge you and you know, exactly let them let them poke some holes in your plan. Well, and and I've struggled with that concept my entire life honestly up until I've kind of you know, I'm going to say as I've gotten older I'm mid-30s. I'm not that I'm a baby still right but yes, I've grown up as I've matured. I've come to understand what that means. It's not necessarily like yeah, you know, I always thought it was like Hey pick somebody that you're going to butt heads with no like you can get along with people who took a different opinion. This isn't high school anymore. Think differently, right? They have a different background. They come from a different industry. And this is somebody who's willing to and has the experience to play The Devil's Advocate job. Right and you might think as you're listening to this, you might think that we're talking primarily about startups here. We're not know. This is any any stage business any role within a business, right? Yeah and think about this issue. You've been in business for a while and you've surrounded yourself with a bunch of advisers. Well, what happens over time as you guys gravitate, you know, like you guys start to blend and mesh well off the last time that you saw outside advice from someone who you know isn't in trenched in your way of thinking because you've been going to the same advisor for the last Seventeen years and you know, you guys are so in tune that you don't even need to go ask this person any more. You know, what they're going to say. No Chrome page someone else. It doesn't mean that you need to ditch that person that you've got history with right but grab someone else and be like, hey, what do you think? Yeah, right. Well, yeah, it's like a dog. Lake if you don't have fresh water coming in and freshwater going out or and water going out gets pretty stagnant. Nasty. Yeah gross right your business will do the same. And so so let's let's talk about so we've talked about like, I think that that's a really good. Like I said a great take away for this episode, but let's talk about some of the other outside factors that can impact businesses. The entrepreneurs don't have control over it and that's where I wanted to go as well. Perfect. And so I'm I'm looking at this and you know, we talked about the economics. Okay deals are one in up markets deals are one in down markets and I don't think that the economy should be the driving force of whether or not you start a business, right but it should when the economy is moving when you're at those big swings in the economy when when things are changing you obviously need to factor that in I was talking to a good friend of mine and she works a lot with businesses off and you know, so we love to share ideas and talk about the different things that that she does and sometimes when she has a business that that she's kind of struggling with, you know, she'll pick my brain and see dead. She was telling me about these these two guys that they launched a gym in a small town and they went huge with it like this massive wage. It's the size of this GM that you would see in a major city with you know, a place that has a hundred times the population of what this was dead. And so like they're counting on everybody in the town coming to that. Well that that was the, that I made to her. I'm just like well, okay, they they have to get like ninety percent of the population and that includes grandma and the newborn baby that are going to come to this gym now, they don't have to come to just have to pay membership smoking from experience Bingo. Wow, but you know, so they open in the middle of this pandemic and I'm like dude. Did you guys notice that like, there's all sorts of Health restrictions in place. And gyms are not allowed to fully operate right and where you're already, you know, like playing the odds not in your favor and then you've got this huge so, you know my friend she comes to me and she's like he got any advice for them and I'm like, I don't I'm sorry. Don't do that. Yeah, you shouldn't have done that. That's where it is, you know, and they're they're a highly leveraged who likes and I just feel bad. Well, okay. So so we've kind of so we're kind of talking about like you're talking about like this pandemic right and how this pandemic has affected us. It's like these acts of God essentially that it's like you can't control an earthquake. It's not necessarily economic cuz we talked about that piece, right? So now we're talking about like so you have this massive heart attack brought tidal wave, right? Yeah in recent history. We've seen things like massive tidal waves flood The fires in Australia. Yeah, the huge fire wildfires and you've seen massive hurricanes, right Hurricane, Katrina come and sweeping through and the South off South America the southern portion of the United States man weird. Yeah, just say that really long tonight go to South America. I know but that's how the Cyril so they're still recovering from that though. Right? So is that I mean, you can't see these things coming up but when they hit that so so there was I didn't work with this small business particularly, but I've kind of kept my eye on them throughout this whole pandemic because they opened like day's wage for here in America before the huge shut down all the massive shutdowns. Okay? Yeah, it was like four days or something like that. They're like, hey, we're open for we're we're business come in and eat at our birth. Front and has like covid-19. Is there like oh, you know, what are they doing? When they're you know, like they're they're facing these disasters. Yeah, it's like well, what is the need if you just had a huge earthquake off, do you really need pizza delivery? Yeah, right, you know and if you if you do like if people were all of a sudden they can't get food and yeah, like wait a second, you know, you do pizza delivery. No need delivery service. Yeah. Yeah. And and so if that is the need and you can fulfill that need, you know, that's probably a better business page and then like a nail technician where no one's really worried about getting their nails done. Right right in the aftermath of an earthquake. Well, and I think that that's another key Point another key take away from Faith episode is adapting right in meeting the needs whatever even if you are an established business, you can shift gears a little bit and all of a sudden take advantage of these opportunities that present job Cells in in any given market and take advantage of that and leverage your business toward filling those needs and you can make it big the way right? So I was down in San Diego. I was at this it was actually an entrepreneurship conference and you know, we're hanging out in the middle of one of the sessions the lights go off nice and you know, you're in this big Conference Center Hotel and you know, so everyone kind of just chills for for a minute the emergency lights are shining so it's not like it's pitch-black by any means but you know, so we're sitting there off and the lights they just stay off and and finally you get the hotel staff that they're just going through the rooms and they're saying yeah looks like powers out and it's not coming off a while. So anyway, come to find out that it was a massive power out. There were about a million and a half people in this area. So I mean San Diego it's it's populated anyway, sure. About a million and a half people that were without power. Okay. So at first it's power outage, no one thinks anything of it, but then you know dinner time dinner time starts to roll around. Yeah all the restaurants off your clothes. How do you cook food? Yeah, how do you cook food? Everyone's there on convention? They're stuck in a hotel. So it's like I don't know, you know, they're like grabbing granola bars out of the backpacks right and stuff like that and the few places that had food like they were just you know, it was like just an arm and a leg for you know, crappy sandwiches are thrown together go down to the gas station and buy a pack a day old egg salad sandwich. That's super questionable over like well, yeah. Yes, sir go hungry. So so so this power outage ends up going through the rest of the evening. She comes back on at like 3 in the morning something like that. So the very next day and this is where I saw entrepreneurship at its finest this guy. He went and got a bunch of t-shirts screen-printed that said like I survived the great power outage. Oh, yeah, I mean but it was so wrong bed. Yeah. He was there selling shirts on the street corner. Yeah. That's awesome. You know at Daybreak and and so everyone was just like whoa, and he's sitting there on a on a ton of them and I'm oh, yeah, he was those shirts were popular for probably a half a day, right? You know, but when you talk about being adaptable I look at it and I'm thinking yeah, I you know, if if you're a nail technician and all of a sudden an earthquake happens and it's like well, maybe I'm just going to shut down my business for a little bit. I'm going to go out and serve and you know, I'm just going to put on my life my you know, branded logo exactly and when people are like hey, don't you on that nail shop? Yeah, but this is the bigger need right now. I'm like be adaptable help out do whatever you got to do exactly so long. Being adaptable leads me to the next point and I know we're getting ready to wrap up. But this leads me to the next point that I wanted to cover really quick, which is we've seen them at least in in in my my time here on this Earth just stated. You're not that old. I know Molly come here read a story to tell the youngsters just getting off, So it's like when you see new technologies or you see these shifts in in our way of life, right? So not it's I mean, I think about it. I'm mid-30s and the first cell phone I had was like I was like fifteen or sixteen right and they were like these janky old crappy flip phones that had horrible screens and Thursday, you could barely text from right so so we go from that and in in in two decades, right and it's like whoa twenty years. That's a long time. No, it's not like in two decades. I've gone from that to we have these Wicked powerful smartphones in our pockets. We have all run your entire business off of this thing, right? But but you think about I mean where we came from in terms of like the Industrial Revolution and everything that occurred and that was in in the history of the world that wasn't that long ago, you know, and so things off accelerating in an incredibly rapid Pace, right and we're seeing all kinds of new tech Dell Technologies evolving from that. So we had like this mobile Revolution kind of a deal. Right, and now we're starting to see in terms of like manufacturing things were starting to see additive manufacturing become this crazy thing. Right? And for those of you who aren't aware out of the manufacturing jobs created name for 3D printing right 3D printing and stuff. But but even from there you you also see in the medical field you see Advance as being in terms of like micro biology and and cellular technology all these crazy kinds of things and so it's entrepreneurs. It's like there's two things that I want to questions that I want to ask her number one. It's like when you see this big shift occurring Is that something that you bring into question when you're starting your business because it's like when automobiles were first invented people are like no, I'm still some old horse and buggy wage, you know what I mean? And they were on board with the automobiles but then and so it's like in that instance. Yeah. It's smart to jump on board with the automobiles because I mean hindsight 20/20. We know go somewhere but then off Microsoft comes out with the Zune, right? I've never heard of that exactly and so it's like so you remember when I pods were like brand new and they were cool. Yeah. So the Zune was Microsoft's version of an iPod. I thought that was dr. Seuss's version of a waggle D. Whack threatened as Unity zoomed. Yeah exactly. It's like it's like my space. It's does it even exist anymore? Actually pretty spaced-out it does. Yeah, but but still actually don't know if soon is a thing or not, but but that's a technology. It's like dead. If you have invested in how to jumped on board with that, you're not doing so hot right now. Yeah, right and so it's like, how do you how do you navigate those Waters essentially wage? Right and I think that you actually you you answered your own question with your example, but it's embracing the correct Technologies moving forward with change. Oh, yeah, that makes sense. So easy to get it totally answer question answer my question know what when when you cross a business when you're trying to meet that need that customer demand, you can't move backward if all of a sudden, you know on this automobile example, if they were trying to just keep upgrading the horse and carriage but keep it a horse and carriage. Okay? Okay, that's not going to meet the demand. Sure. So let's let's look at this. So right now dead. Elon Musk is huge. Right? Okay, everybody else who he is and what he's doing and whatever. So right now he's working on his SpaceX. Sure Venture. Is that something jump on board with well? Okay, and I'm not saying the company itself or his product whatever you want to say itself, but the notion of accessible space flight and like returning rockets and fuel cells and all that kind of stuff. So you jump on board with that. So let me answer it this way and and I'm going to kind of summarize whole bunch of things that we've talked about in this answer and that is that when the outside factors are weighing heavy on your entrepreneurship Ventures, whether you're growing an existing company, whether you're looking to start a company whether you're branching off something from your company when there's a lot of outside influences, it can be a pain demek. It could be economics. It can be, you know acts of God as you put it off. When those are happening the need for Solutions increases which means that the need for entrepreneurship increases, however, the people who are going to sort of those needs are not going to solve tomorrow's problems with yesterday's Solutions. And so as an entrepreneur, yeah, you've got to push the envelope and if that SpaceX travel sure that's fine. But you've got to be willing to push that envelope and and so and and it kind of just wraps up with all this and I am going to wrap up because man, we've covered a lot of ground but month but it's this idea of get those advisors that are giving you some outside perspective understand the needs that are present with these changes in, you know, in the environment around you look for those opportunities and don't be afraid to step forward into it. And so yeah, it can be a scary time, but it can also be an exciting time for entrepreneurship with job. These outside factors constantly pushing in and so I love them. You don't love them that to me is kind of the takeaway is this like there's always a need for entrepreneurship. In fact today. There is a greater need for entrepreneurship wage. Then there was pre all of this craziness that's going on in the world. And so if you're an entrepreneur and you're willing to step up to the plate you're needed get out there make it hot out there and do it for sure. So with that. Let's go ahead and wrap it up. All right fine. Thanks. Thanks for tuning in. We love to having you. This is marketing management and money. You can find us at marketing management money.com leave some comments. Let us know what you think and we will catch you next week. You guys are awesome joke.

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