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Financial Stress in Small Business

From Web Smart Newsletter: Proverbs and Ecclesiastes on Business
Originally published February 2005 - Updated July 2006. By Eric Holter.
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Dealing with stress and difficulty

A gentle answer turns away wrath, but a harsh word stirs up anger. Proverbs 15:1

If you're going to be in business, you will have difficulty! A common source of business conflict comes when one party feels they have not received the value they negotiated. This is especially common (as Harry Beckwith points out in Selling the Invisible) in service industries. How can one definitely measure the value of a service? Evaluating products can be easier. If it won't turn on, it fails to meet the conditions of the exchange. But how does one determine whether a brochure has been designed well? If the logo is printed upside down, it is clearly flawed. But if there is dissatisfaction with design, the reasons are usually more subjective. The same design can be loved by one client and hated by another. Sometimes, when design is submitted to a group for evaluation, some people love it while others might not "think it's there yet." Has the exchange been met? The designer has delivered their time on the project (which is ultimately what they are selling), but the client is not satisfied. Such conflicts, though hopefully rare, are inevitable, and we need to be prepared for them.

As a subjective service, design is particularly prone to such disagreements. Because a designer is selling their time as a skilled artisan, they may feel like they've met their obligation. However, the buyer is looking for a finished product to their liking. When the buyer is not satisfied, there is an imbalance in the exchange. Anyone who has sold design services knows that such instances are inevitable. Solutions are not always easy; they require further communication and negotiation. If you realize that engaging in business, especially the design business, will have such tensions and conflicts, you can be prepared for them. The best solutions are not found in the fine print regarding kill-fees and rounds of design (though wise to include in your contracts), but are discovered by keeping a calm spirit when working through problems that do occur. The best defense I've found against escalation in such conflicts is to always avoid harsh words that stir up anger, and instead seek gentle answers that can soothe the conflict and help find an agreeable solution for both parties. Not only will gentle answers work better in conflict situations—they will also add to your credibility, integrity, trust, and reputation with the client. A history of such practices will positively affect your reputation within the business community. For the designer, or any seller of services, a good reputation can be worth much more than gold.

Financial stress in business

A worker's appetite works for him, for his hunger urges him on. Proverbs 16:26

Financial stress is another common difficulty in business. I've yet to meet a business man or woman who has not endured at least one significant season of financial stress. I know I've had my fair share. Proverbs 16:26 provides a helpful piece of wisdom for such times—work hard to get out of it! Make sure you realize that times of financial stress can be the perfect time to evaluate and improve all aspects of your business. Hunger urges us on. If I am hungry, I desperately want to fix whatever problems are contributing to my hunger. In this way, while never pleasant, financial stress can have a powerful cleansing, priority-setting and focus-refining effect on your business. Hunger can become something of an ally, if you let it work on you. So, (I say to myself) if you're having financial trouble, stop complaining and get to work!   next >

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