Last month I drove home to Houston from Austin, Texas on a route that took me via Bastrop, a small town in Central Texas that was the scene of devastating wildfires only a few months ago. Driving home, the ground on either side of Highway 71 was completely scorched, like a blackened catfish served right out of the pan! Everywhere I looked, burned, dead trees lined the road.
Scenic 
Bastrop State Park, where I used to go camping in college, is now gone. All that remains of the once beautiful forest of pine and oak trees is some charred sticks reaching up to the sky.
What caused the fires?
Aside from an errant spark, the fires were caused by the extremely dry conditions due to the second longest running drought in Texas history. Seeing the devastation firsthand compels me to write a post about the drought and how it is affecting businesses. I heard on the radio this morning that revenues to Texas State Parks & Wildlife (a state agency) are down, due to fewer people going to State Parks (not surprising if there is no park to go to!). So I asked a few of my clients how the drought was affecting their business, and received some surprising answers. Read on.
First, let’s look at a landscaping company who is experiencing a 20% drop in business, as a direct result of the drought. It seems that nobody wants to plant new plants that might die for lack of water. On top of this, many homeowners are taking the “DIY” approach and installing their own xeriscaping, instead of using the landscaping company to do it.
A second, unexpected cost of the drought comes in the form of the dead trees. The cost of removing dead trees in the City of Houston alone is estimated at $14 million. This is money that was not budgeted for, thus it has to be taken from other places (other budgets). Due to an average annual rainfall of 50 inches per year, historically Houston has never had to water the grass and trees in its many parks. If the trees are not removed, they become a hazard because they could fall over anytime, anywhere.
Third, a more obvious cost of the drought is to the agricultural industry. Lack of rain throughout Texas has far-reaching consequences that affect many industries and markets nationwide, from beef to wheat to cotton. Texas alone produces 55% of the total cotton crop, and 2011 losses so far are estimated to be $5 billion.
There are other kinds of drought in a business. From unexpected costs, to business downturns, to the economy, all of these are interconnected. What affects one impacts the other. If the economy is poor, then corporations are reluctant to hire, and no new jobs are created. A hiring freeze means no fresh blood, thus no new ideas come into a company, a condition which can lead to stagnation. And, as Jack Welch once said “If you’re stagnant, you’re dead!”
If you’re stagnated in your career, or you’re a solo-preneur who’s in a drought, you might need someone to help you reinvigorate yourself or your business! That’s where coaches come in. Coaches can be a much needed sounding board, accountability partner, or just someone to see things from a fresh perspective. Coaches can help you achieve goals in your business much faster than you would on your own.
How about you?
Are you taking steps daily to grow your business?
When was the last time you had a new client or brought in new business?
This is great advice from Karen. She’s among the good choices. (I place myself in this upper echelon 🙂 ). Please make sure you find the right coach- or you will get burned as bad as the Bastrop State Park!
Love it Roy! You are a true wordsmith!
I’ve used a coach since the very beginning of starting my business. It’s made all the difference! As far as taking steps to grow my biz? I do something every single day to increase my list of prospects. Every. Single. Day. There’s just no getting around it. If I want clients, I have to get out there and bring them in!
Good advice Martha! Thanks for sharing.
Hi Karen, excellent analogy you used. I cannot agree with you more on the coaching aspect. I have a coach but didn’t for the longest time. to be honest, I really didn’t understand the value until I took the plunge. It has saved me more time and money and kept me accountable. Funnily, it was my coach (who is a very well known online success story) who pushed me in the direction of coaching as well. Since then I have just launched my own new site and the response has been amazing. I really think that anyone who is struggling needs that wind beneath their wings to help them see clearly and stay on track.
Jayne
Hi Jayne – Thank you for your reply. Your experience echos that of many – they don’t know the value of coaching until they dive in and experience it firsthand and/or long-term. Congratulations on your choice of this new profession.
Karen
Thanks for the post Karen.
Businesses (as well as people), go through cyclindical ups and down. It is inevitable. Look at Apple (remember the Lisa), IBM, or any well-known global corporation. They all suffer some mistakes, and resulting declines in performance. However, strong firms can weather the down-turns because they have strong cash flow, entrenched brands, and a willingness to change – when needed. Plus, they are diversified enough that if one business is down, another might be up (or at least OK).
For small businesses, it is all about cash flow, and your overhead cost structure. If business is down, you need cash to operate. The more fixed overhead you have, the fewer options you have to reduce expenses. It is sort of accounting 101.
You always need to plan and focus for success, but you have to also think about risks (economic, competitive, etc..). What if a large fire wipes out a piece of your business – what will you do? You had better know before it happens, and have the cash flow to get you through the change period.
Thanks for writing – keep it up!
Dale M.
Lets build relationships with others and remember that some will, some won’t, so what, who cares. Someone is always looking for us.
Lets also know how many people we need in our company to earn our desired amount of income and have an accountability partner to see where we are at in our business and what are the next steps we have to take to move forward.
Lawrence Bergfeld
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