COVID, Shut-downs, Recessions. How Small Businesses Fight Back
Uber. Airbnb. Microsoft. Instagram. Pinterest.
What do these companies have in common?
They are all unicorns—companies that are ranked as among the most valuable in the world. These brands have something else in common; they were all launched during a recession.
Here’s the breakdown:
Uber was founded in 2010 during the “Great Recession” and was turned down by everybody, including Mark Cuban. He passed on the chance to buy a 5% stake for $200K that would be worth $2.25 Billion today.
Airbnb launched in 2008, when the financial world exploded with a resounding crash. Seven investors turned them down for seed money. One investor bought 585 shares for about a penny each in 2009. When Airbnb went public, each share was worth $145 apiece.
Pinterest was valued a just over $5 Million in 2010, but when it went public in 2019, it was worth $10 Billion,
Microsoft came on the scene way back in 1975, during the painful days of oil shortages, double-digit mortgage rates and high taxes—what the media called “The Misery Index.” Founders Bill Gates and Paul Allen got $1 Million from a VC firm. Today Microsoft has a market valuation of $2 Trillion.
How do small businesses create their own luck?
There’s lots of advice out there: make sure your business plan is agile enough to accommodate market meltdowns, have cash reserves (rainy-day money) on hand, and—most importantly—lean into your community. A business that has done a good job of relationship building will fare better during economic slowdowns. Here’s what I mean.
In early October, my boutique, La Jolie MLN, hosted a luncheon for independent women business owners from my community of Elmhurst and surrounding areas. It was a lively group of innovators from a wide range of categories. During the luncheon, each woman got to stand and make a 5-minute introduction of her business. This included:
Colette Luchetta-Stendel who owns her own law firm in Lombard
Maria Vacchiano of Pampered Chef, quality cookware
Susan Musaus, owner of The Riding Store in Woodridge for quality riding equipment
Travy Hodges of Water/Fire/Mold Restoration of Fox Valley
Candice C. Kuhnen, The Conector, a concept marketing firm
Brooke Lighton of Addiction Hurts, You Can Help - a t-shirt and apparel line that I sell at my store
After the luncheon, many of the women reached out to each other and started the process that often results in a new client relationship. And, of course, the occasion took place in my boutique, so shopping was on the menu.
Collaborating with businesses in the community
Recently, La Jolie MLN joined neighboring businesses for the 2022 Winter Coat Drive (learn more here). Our goal is to collect 1,000 new or unwanted coats, hats and gloves for those in need. Our partners in this endeavor include:
Judith B. Salon & Spa
Illinois Spinal Care
Elmhurst Bank
Bazzy Boutique
Evolve Beauty Bar & Med Spa
Accelerated Aesthetics
We are also teaming up with local businesses to offer an Advent Calendar (learn more here), with products worth $250. Collaborators include:
La Jolie MLN
Maxine
Bread & Butten
Bazzy Boutique
Judith B
Merle Norman Cosmetics & day spa
Kilwins
Most of us can remember the days of in-person networking events. These were often large, industry-specific lunch or dinner get-togethers with speakers and time to mingle and pass along business cards. COVID had a devastating impact on U.S. business with an estimated $28 Trillion in lost economic output. The business events sector was one of the worst hit.
But, now that masks are no longer mandatory, COVID is a fading memory. However, people are fighting a new set of problems such as inflation, supply chain disruptions and the threat of recession. In other words, small business owners are going to have to learn new ways to band together in mutual support.
A few ideas:
Hold your own event where people can share their business stories and build their networks
Post recommendations on friends’ LinkedIn profiles. They will typically return the favor
Consider opening an account on sites like hivebrite, a platform that allows you to stay in contact with alumni from your college or university.
Ask business owners if you can contribute to their blog site. For instance, at LaJolie MLN, we regularly write stories for businesses we support. This includes artists, designers, not-for-profit partners and the like. It allows you to broaden your profile and attract new customers.
