Posts Tagged ‘recession’

THOUGHTS FROM THE DECK OF A SINKING BATTLESHIP IN A STORM

Wednesday, August 25th, 2010

 

The title of this post is from one of my favorite movies,”The Royal Tenenbaums”. Something to it’s affect was carved on Royal’s grave stone at the end of the movie. I find it prescient at the moment. Not the grave stone part, but the action of it’s prose. 

One of my “big” ideas when I started this one sided conversation with myself was not just to create enough material to thoroughly bore the hell out of it’s readers, but more importantly to compile an accurate account of what goes through the mind of a small business entrepeneur during both good and bad times. Not from the side of “hey look at me, look how I did it” but more importantly to illuminate how god damn difficult things can be and to share total gratification from the process with all of the other type A unemployable types out there. Yes the voyage is more important than the destination, unless you should find yourself on the deck of a sinking battleship….in a storm.

Running two small shipyards in Southern California during a recession has proven to be the most challenging experience in my life….so far.  Customers have disperesed to points unknown and bankers have become let us just say, timid.

It is so damned slow right now I actually called the CI yard with my cell phone today to make sure the phones were capable of receiving an actual phone call. Sadly, the phones proved to function just fine. My coworkers have been asked to only work the hours required to complete their tasks.  God bless them as they have remained here for us and our customers. Unfortunately, their hours have shrunk by over 35% this year over last and we cannot say the same for their personal financial needs.

Yes times are tough and appear to be getting tougher. There is no vanity in holding back our truths. I can clearly see that my competetors are experiencing the same dismal journey. The only difference I can guess, is that they are much larger and  have much deeper pockets.

So here I sit and write in front of an enormous chasm, both deep and wide. I will throw these notes into the well not knowing who may read them or why. All I ask is that if you do happen upon my words, that you understand they are written merely to provide a view in time from the perspective of a hard working soul, attempting to keep a sinking battleship off a lee shore during a storm.

Fair Winds

Small Businesses and Banks

Friday, July 2nd, 2010

7/2/2010

Unless you have stressed about making a payroll you cannot with any true empathy understand just how truly difficult times are right now.

As a former Morgan Stanley stockbroker turned small business entrepreneur, I can assure you that I know from where I speak.  When I began my journey into small business 5 years ago, I had an awareness of how good things were, and only a vague idea of how bad things could get.

I operate two small shipyards in Ventura County and employ a small crew of skilled and dedicated souls.  Our facilities require massive amounts of capital to retain, operate and maintain.  Through sheer will, improvisation and plain old gut instincts, we have managed to “stick it out” through an incredible business cycle with only our customers to thank.

Our bank contacts have not only changed, but have “run for the hills” in recent quarters. I am of the opinion that the only businesses banks will loan money to right now are the businesses who don’t need money at all.  It was my understanding of a bank that it was an institution that receives deposits and lends money period. How can a bank exist if it makes no loans? True, bad loans are worse than no loans, but somewhere between a bad loan and a good loan is where we are talking about. Ceteris Paribus, there are no good loans based on current banking parameters.

I understand our “quick acting” congress is working on a law to assist local banks and small businesses.  Excuse me for sounding jaded, but I would bet that the new legislation will be ill equipped to help people on the frontlines like myself.

So here we are, three years into a nightmarish business cycle with no help, unless you are a Wall St. bank, a government  employee with a strong union or a recent lottery winner.  To all the entrepeneurs out there, hang in there, make your own rules, love your vendors and love your customers more.

Andy Killion