Entrepreneurs Will Emerge from this Downturn STRONGER than Before

My husband, Stephen, owns an equipment finance company, so needless to say both of us being entrepreneurs in the lending industry has some days felt a little disconcerting lately. However, despite the recent challenges in our businesses, I was encouraged today when reading Gene Marks' article in BusinessWeek on how this downturn is actually GOOD for the entrepreneur.

When big companies like Linens 'N Things and Lehman Brothers are dropping like flies, here are three reasons why the little guy will emerge STRONGER.

1. Survival of the Fittest

Whether you believe in Darwinism or not, you have to agree with the fact that the companies who ride out this downturn are the fittest. Its easy for everyone to do well during a boom, as much of our competitions' inadequacies can easily be hidden. A perfect example in my business is the amount of Loan Officers who entered during the refi boom, and are nowhere to be found now. I also saw a recent article in Agent Genius that 2009 expects a 20% decrease in Realtors -- whoa, that's HUGE!

We remain respectful and empathetic towards our counterparts who are forced to leave our industry because many of them are very good at their job. However, many are not, and their absence means those of us who make it past this downturn will emerge with less competition.

2. Healthy Disbelief in the Establishment

The Realtor or Lender oftentimes wondered if they were in the right line of work when their friend working for the "big company" had a juicy expense account, company car and travel opportunities; but we realize now that all of that can be fluff because it gets paid for somehow, and recently its been with layoffs. Take for example, the automakers flying on their private jets to Washington asking for a bailout -- an excessive expense that landed them ridicule from Congressmen Gary Ackerman and Brad Sherman. Entrepreneurs look at the automakers now and realize the fat cats really aren't any smarter than we are; and thus, we emerge from the downturn more confident in our ability to run a tight, well-oiled ship.

3. Sticking with the Fundamentals

Gone are the days of buying the new desk, sweet fax machine and renting prime office space because its cool, and it provides a good tax write-off. Business owners have a new-found respect for the guy who kept is overhead low and put away some of his revenue for a rainy day. The great thing about being in real estate is its much easier to manage our overhead especially with operations practically all digital. Most of us have home offices -- a trend big companies have started to emulate. This flexibility allows us the ability to offer our clients the low-cost/high-value product or service our competition can not.

So, for all you Realtors, Lenders and small business owners out there still busting it, stay positive during these times. Most importantly, appreciate & capitalize on the the silvering lining available to you during this downturn!