Navy parlance for small businesses

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November 22, 2009

By ANDREW ALBATYS The News and Tribune Sun Nov 22, 2009, 01:17 AM EST

Like a lot of people my age, I grew up watching movies about the great naval battles of WW II. The ships would emerge from the battle, battered by enemy fire, their crews tired and dazed from the fight. As soon as the ship was in the clear, the captain and crew would initiate a plan of repair known as “damage control.”

Yes, the term was in use long before it became a household word for some politicians feeble attempt to explain why he was caught in a cheap motel with his secretary.

In Navy parlance, “damage control” is a plan to gain control of any issue that may put the ship in jeopardy.

Today, most small businesses in America are finding themselves in a position not unlike the ships that survived the battle. Without question, the last few years have taken a heavy toll on a lot of small businesses. Mine included. At least for now there are signs the economy may be moving in the right direction. Some optimistic people feel we may have seen the worst and that the future looks bright. I’m not so sure. With the country deep in debt, unemployment at over ten percent and America’s core of heavy industry facing ever greater challenges there may still be trouble on the horizon.

In either case, now is the time for small business owners to do everything they can to guarantee the survival of their businesses. If the worst is really behind us, anything we do will only make us that much better. But if rough waters are ahead, failing to use this respite effectively could sink us for good.

An old salt once told me that in the Navy there are 10 commandments for “damage control.” Among the 10 are several that seem as appropriate for businesses today as they do for ships at sea.

“Keep cool. Don’t give up the ship.” That’s good advice in any situation. Make decisions based on fact and not on emotion. Businesses seldom fail because of one bad decision. Usually failure is the product of a series of bad decisions, each one compounding the other.

“Keep your ship watertight.” In other words, plug the obvious holes. If you know something that is draining your business, unnecessary overhead, inefficient operations or outsourcing something that could be done in house, now is the time to make some changes.

“Know your way around the ship, even in the dark.” How well do we know are own businesses? Do we really know what products or services that we sell that are the most profitable? Better yet, do we know which ones that are not? If you can’t remember the last time you sold a particular item it is probably less than prudent to have six cases on hand. Now is the time to focus on what we know makes money. Simply put, keep the best and lose the rest.

“Have confidence in your ships ability to withstand damage.” Most small businesses can survive a hit or two. Losing a big account or supplier may seem insurmountable but it doesn’t necessarily have to be. How quickly and effectively you respond to a challenge will determine to what extent you can minimize the damage.

“Report damage to the nearest damage control station.” If there is a problem make sure you know about it before it gets worse. Few problems ever fix themselves. Ignoring them or not seeing them for what they are won’t make them go away.

“Take every possible action to save the ship as long as there is any hope.” Now may be the time to make some hard choices. It’s never easy to cut back, lay off employees or close stores but sometimes it’s the only way for a business to survive. Nobody likes the thought of scaling back. By nature we want to see our businesses grow. But sometimes it’s necessary to sacrifice parts to save the whole.

And sadly there are times when there are no viable options left. There is a time to abandon ship. For most business owners it’s the hardest decision they will ever make. But mortgaging your home, cashing in your retirement account and borrowing money from anyone who will lend it to you to keep a failing business afloat is an even greater disaster in the making.

Here’s wishing you clear weather, calm seas and smooth sailing.

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