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Old Habits Die Hard. Let's Kill Them Anyway

Bill Clinton is a vegan. This mind-boggling conversion -- from a man who while president was infamous for his McDonald's binges -- shows that it is possible to change even the most entrenched behaviors.

The same trait is vital today, especially for entrepreneurs.

So how open to change are you? Do you cling stubbornly to old methods and outdated systems because they always worked for you? Do you assume the economy will right itself eventually, and things will go back to the way they were, so why do anything radical now?

The "Good Old Days" Aren't Coming Back
It's pretty evident that it is going to be quite a while (if ever) before we return to anything resembling business as usual. If you've been hanging on, just waiting for the return of the good old days, you're going to be waiting a very long time.

We are in the midst of a radical shift in how we conduct business. The old models don't work anymore. Competition is fierce and global. The cycle of going from a hot new idea, to being one of many companies in a glutted market (think Groupon) is incredibly short.

Many long-established business models seem to be going the way of the Edsel. A report from outplacement consulting firm Challenger, Gray & Christmas says fewer unemployed executives are starting businesses than ever before (or since they started measuring this in 1986.) Only 2.5 percent of this group launched a business in the 2nd quarter of this year.

The report had more bad news: For the first half of 2011, an average 3.3 percent of job seekers went the startup route. The previous record low was 3.7 percent for the first half of last year.

Challenger, Gray & Christmas CEO John Challenger mostly blames the tight lending environment for the paucity of startups: "For many [people] wanting to start a business, funding the venture with credit cards or through a home equity loan are no longer viable options." And he adds, "Hiring is improving just enough to keep people on a more traditional employment path."

But it goes deeper than that. There is a staggering cost to starting a business -- if you don't have a spouse with a full-time job -- and that's health care. (My premium more than doubled from my Cobra payment, and I got fewer benefits with a higher co-pay when I started my company.) Yet despite all the controversy, we're still stuck with a health insurance system that essentially discriminates against solo or small business owners.

Shaky Statistics
A pet peeve of mine is the archaic government definitions that pertain to small businesses. The Small Business Administration was born in 1953, when big businesses were indeed huge. Many jobs have been eliminated or consolidated by technological advances. The advent of e-commerce has cut down the need for big staffs at retail establishments. Yet check out these definitions I found on the current SBA website:

Services: Annual receipts may not exceed $2.5 to $21.5 million, depending on the particular service being provided. 
Retailing: Annual receipts may not exceed $5.0 to $21.0 million, depending on the particular product being provided.
Really? In what world is more than $20 million in revenue small?

And despite all the current concern about job creation, I just learned that the government doesn't count solo startups as "new" jobs. So even though someone starts a business, essentially employing themselves, there is no official job created. I don't know why this ever made sense, but it's especially absurd today.

Suicide by Stubbornness?
These archaic issues all affect the broader, macro-level view of the economy. But what about you and your small business?

My guess is if you take a look around your business you'll uncover a good number of things that need updating. I've been regularly watching "Bar Rescue" on Spike TV, and every week I'm amazed at the outdated business practices the bar and restaurant owners cling to, despite the obvious evidence that they cost them money and alienate customers.

I'm not pretending that change is easy, I know old habits die hard. But if you want to grow your business, if we're going to help propel the economy, it's time to quit doing things just because they are easy and to take on new solutions.

If Bill Clinton can be a vegan, then, anything seems possible.

Wireless Business Solution Zee Tawasha