Optimism is Internal

Optimism is something we all struggle with from time-to-time, but there are some ways to help. A recent article in CFO Magazine was about the decline in small business optimism. According to the article, small businesses are creating more jobs recently, but their pessimism stems from such things as concern over taxes, government regulations, and sales. All of these are legitimate concerns, but let’s look closer.

Government

In the posting Government is Not Going Away some of the laws and regulations imposed by the government were discussed, along with some ways to deal with these. The bottom line when it comes to governmental impact on businesses, regardless of size, is that there is limited ability to control this area, but it is important to take steps to manage this area to minimize the headaches created. To reiterate, consider having an attorney, CPA firm, or Part-time CFO who can help guide you through the maze. Each of these has different things to offer.

Macro or Micro?

In another blog, Forget the Macro Economy | Think Micro, the importance of recognizing what you can and cannot control was emphasized. Face it, neither you nor your company can control the overall economy, what the government and Federal Reserve do to impact the economy, how other countries impact the global economy, tax laws, and a host of other things. Things that are beyond your control, while important, really require more that you understand them and take whatever protective action you can. They do not require you to control them, and you can’t anyway. So look internally to see what you can improve in your company that will enhance results. You have significant ability to influence employees, customers, vendors, and company operations. Within each company is a micro economy that is subject to influence by your decisions. Drill down to the areas you can impact and study them closely to improve your optimism. By focusing on what you can control, you will begin to discover that optimism is internal.

This, like dealing with governmental issues, is an area where a Part-time CFO can be of great benefit, so ask for some guidance.

part-time-cfo-helping-clie
Part-time CFO Helping Client

Optimism

If you only listen to the news or read articles like the one in CFO Magazine referred to above, you are likely to find yourself discouraged. The key is to recognize what you can control and influence and then focus on those things. When your attention is directed there you will begin to see your optimism improve. One of the best ways to get focused is to use the 80/20 rule (the Pareto Principle) to help identify the 20% of things that will have 80% of the impact.

Are you optimistic? If not, are you focusing on the wrong things? Do you need some help to get back on track? AimCFO is here for you, so if you could use some help, contact us at AimCFO – Contact.

As always, your comments are welcomed.

 

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