Small Biz Optimism Takes a Beating From Market

FOX Business Scoreboard - Small Biz Optimism Takes a Beating From Market
Jun 27, 2011 Marlin Steel Wire President Drew Greenblatt discusses Small business owners and the economy

FOX Scoreboard: >> Markets aren't the only thing tanking, so is small business optimism in some cases. Who are they blaming and what are their solutions? We do want to spin it forward with solutions so let's ask entrepreneur Jen Groover and Drew Greenblatt of Marlin Steel Wire.
Let's spin it forward, I don't know, first let me ask you Drew, are you pessimistic? Are you you very worried or are you saying we can survive this as small business owners?

DREW GREENBLATT >> We can survive this. The American entrepreneur, the American ingenuity, will struggle, but it's going to get through this. I'm bullish for the future still, but it's not going to be because Washington helps us, it's not going to be because of the headwinds they throw at us. It's going to be because we are smart people, we have great character and we're going to push through.

FOX Scoreboard: >> Jen, I couldn't agree with Drew more, and you look at, say for example, Paul Mitchell, the hair products guy. He's been in here and he says I started my business in the 1980s when interest rates were 13% and I only had $750. He's now a multi-multi-millionaire. You look at that and you say, it's the spirit... that can really keep people going.

JEN GROOVER >> It is, entrepreneurs are going to do it because they're passionate, because they're excited. Entrepreneurs are also the backbone of our economy. But there are moments when I hear people say, I'm scared, I don't know what to do right now, and they're not going to hire right now, especially with everything they are seeing from the hype. There's so much excitement in the past three days that everyone is saying, wait a second, I was about to hire. What do I do now? The first thing I say is don't panic. Educate yourself. Understand what is going on because it's not as bad as you think it is. Despite what's happening, especially going into the 4th quarter. The 4th quarter is the biggest quarter for every small business owner. It makes or breaks small business. Do not stop what you were going to do. Continue to do what you're going to do. Continue your plan, continue your spending on your marketing budget and the consumers will come. Give them a reason to come.

FOX Scoreboard: >> I'm hearing Little River Band - Hang on, help is on its way, Drew. That is the song that I feel like Jen is verbalizing here. What are your pieces of advice to the small business owner, entrepreneur who has had to lay off maybe three of six employees. There's not enough demand for the moment. They lower their hours, it's a little nerve-racking.

DREW GREENBLATT >> Absolutely. I think you have to watch cash flow, you have to watch it very carefully. I think what you have to do is go to your biggest customers and find out what are the things that make you different and what are ways that you can help them so that they can save money. What are ways that you can give them new developments or new innovations so that your clients would appreciate you more and you're trying to build a moat around yourself so that your biggest customer is giving you more business. I think that's the way to break through because if your big clients stay with you and hopefully they'll give you more opportunities, then you're going to be able to survive this recession and some of your competitors will fall by the wayside and maybe you'll get their accounts. So I think that's how you have to do it. You have to be optimistic, you have to be looking at what are the key ways that I add more value for my prospects, my clients so that I'm different.

JEN GROOVER >> I agree with him 1,000%. Differentiate yourself. Give them a reason to come. Customer service is key. The most important thing that I think we can acknowledge right now is understanding why we're having what we're having right now. This situation is because of system breakdown. Entrepreneurs are so self-sufficient and independent. They don't look for hand-outs. They don't look for entitlements. This is the time though, as a wake-up call to start to be an entrepreneur to your legislators and say this is what we need. These are the tax breaks we need. These are the incentives that we need. We need now, more than ever to speak and say when you're creating a new system, this is what has to be increased.

FOX Scoreboard: >> Drew, I think that on both sides, I'm not sure the government would listen, but a great example, I wanted to order name labels for my kid going to camp and I ordered from a label company called Label Daddy and there was a problem with the delivery. Anyway, I got one-on-one treatment from the owner who said I'm a small business owner, I want you to be happy and I was so happy by the end. Everybody order their kid's camp labels from Label Daddy. This is a classic example of how to behave in a tough time by holding on to the loyalty of customers.

DREW GREENBLATT >> We went to our biggest customers and we asked them, what are the things that you need? Our clients need faster delivery. Our clients need more engineering to help them. So what we did is we bought some new technology, some new robots, so we could ship faster and we hired engineers. I think every company out there, every small business out there has to look at what are the things that you need to do to differentiate yourself from the competition and to make your biggest customers say to themselves, this is a key vendor. This vendor is critical to our future and we've got to keep them at all cost.

FOX Scoreboard: >> These are the most inspiring moments of my day today. I have to tell you Jen and Drew, thank you. I'm not kidding, this was great. Thank you both.