The Boss of You

I’ve personally been really hesitant to comment too much on the economic downturn and its impact on small business. On the one hand, I feel very strongly that the kind of business we have always advocated for — sustainable growth, measured risk and frameworks for measures of success that don’t focus exclusively on ballooning profits — is very well positioned to weather the current economic storms. On the other hand, I’ve seen some very hard working, smart business folks in my life suffer the current winds of change. A combination of bad timing and a need to access increasingly elusive credit, combined with the impact of the downturn on overall household incomes, where one income was perhaps coming from their partner having a job that is now gone or in jeopardy, have proven to me that not everyone is immune and there are no easy answers.

However, (and you knew there had to be a however in here somewhere), about a month ago I found myself sitting at the island in my mother’s kitchen thumbing through the paper for the business section when I was faced with a glaring contrast of the traditional (and supposedly successful and aspirational) business model and the way that we have been advocating approaching business.

In the left column, a story about how courts were backing a big Canadian telecom company in giving CEOs large bonus cheques despite the fact that many staff were being laid off within the company — a situation that I as a business owner simply can not imagine finding myself in. On the right, a story about two women who are working to renovate a downtown Victoria location to become a small cafe focused on quality, local food at affordable prices. Devour, the name of the new cafe, opened in April and the two owners spoke in the article about some of the silver linings they saw the current recession bringing them as new business owners. While they did also acknowledge the challenges, they cited everything from lower interest rates on loans and cheaper rent on commercial space, to a shift in people’s attitudes toward how they spend their money as potential benefits to open a business in this climate. In the interview, one of the owners, Alison Bigg, described the shift this way “I think people are really keen to support local businesses and local farmers, doing things that will help the local economy right here, right now… We are going to do affordable, quality food and that’s hard to find.”

Exactly.

Sadly, I haven’t yet had a chance to sample what sounds like delicious options at Devour, but will be heading there next time I’m in town. It is my sincere hope that these gals are spot on the money. Not just because I happen to share these gals views on food, but because I really do hope that if this downturn does one positive thing it helps to shift people’s attitudes toward building locally grounded businesses based on realistic expectations and a desire to engage in local communities. There was a time not too long ago when people assumed that working for a big telecom company on salary was the less risky, more stable career choice while entrepreneurial pursuits were necessarily high risk. It is my sincere hope, that as Lauren brought up a few weeks ago perspectives on risk are shifting and with them attitudes toward what makes a successful model business. And in the meantime, if you’re in Victoria check out Devour and let me know what you think.