Optimists vs. Pessimists in Business: Which are more successful?
I’m confused about this one: A Reuters article reports that the Federal Reserve has cut interest rates in both September and October. So, this means: you can borrow money at a lower interest rate, that is, you can borrow more cheaply. So this is supposed to be good for small businesses.
Instead, small businesses are less optimistic, and they are cutting spending. I thought I had some kind of handle on economics, but I guess not. The thinking (according to someone from the National Federation of
Independent Business (NFIB)) was that a rate cut meant that the economy was slowing, so businesses were being careful and not spending because they were worried about the slowing economy. So if rate cuts are meant to help the economy get moving, why aren’t we?
Many small businesses are existing right on the edge. They are living from one payroll to another, hoping that orders come in and that sales will be made in time to cover next month’s expenses. If things look less promising, they will cut back. It’s about calculated risk. As a small business person, I’ll take the risks that I think I can handle, but not the ones I’m not sure about. Is this you? If you didn’t pay any attention to what was happening in the financial news, would you run your business any differently? Would you expand in anticipation of better times ahead?
Small business people are, by definition, optimists. The NFIB says that optimists make better business people. Optimists think long term. Optimists don’t dwell on current circumstances; they think ahead to better times. Optimists are certain things will improve. Over time, I’m sure the optimists will always come out ahead. In this case, though, in the short term, the pessimists have the upper hand.
So are you an optimist? A pessimist? Take a second and tell us.
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POSTED IN: Finance, Mindset, Sharpening The Saw
1 opinion for Optimists vs. Pessimists in Business: Which are more successful?
Are you worried about the “credit crunch”?
Dec 10, 2007 at 1:27 pm
[…] as mentioned in a previous post, take a long term view. They are willing to hang on because they see better times coming. And they […]
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