Service business update 5
Perfect shitstorm - In the end, good people turn the tide.
Q4 2023 was good…, and January 2024 was also surprisingly good. I felt so good that I planned to even invest in new machines. I was excited, and my customers were also excited. “First normal year since 2018-2019?”
I told my workers, “Although the early part of the year is slow, don’t worry at all; we will be fine.”
On slow days, we leave work early…
The slowness keeps continuing…
Next week, I have to tell my workers that if demand doesn’t pick up, there will be layoffs (there is not enough work, and cash ends eventually).
Most don’t understand that you start laying off your workers as a last resort.
Nowadays, it is tough to find good people.
Just basic stuff: be nice, say hi, be almost on time, and try a little bit.
Employee loyalty and morale.
It’s over when you lay off.
Recruitment is challenging and costly.
I only employ 3 now; if I do now, a miss-hire, the whole business dies.
→ In the past, I had one toxic worker. Everybody here told me they would quit if I didn’t get rid of this toxic person.
- Constantly on sick leave, constantly taking “own holidays”, bullying other workers, not doing the job. This costs me two years’ salary. Followed by constant terrorizing of business, lawsuits, bullying of my customers, bad reviews everywhere…
Good employees are essential to success. Who on earth wants to lay off good people?
I want all the good people here, and together, we will succeed!!!
GOOD PEOPLE = WINNING
FINLAND FINLAD FINLAND
Well, why did the good buzz go down the toilet?
Strikes and more strikes. Finland has had massive strikes this year. First, it was just a few days, and now the Finnish ports have been closed for two weeks... and they will continue to be closed.
I don’t think anybody here in Finland understands how bad this is in the long run.
Nobody even seems to care…
So what’s the beef?
Unions are stuck in the 70’s, and there's a pervasive lack of insight across government and society in Finland.
The fact is, nobody seems to understand what the real problem is.
Finland is unproductive
Finland is not a nice place to invest
Why work hard in Finland?
Why run a small business in Finland?
Why invest in Finnish companies and people?
Purchasing power going down.
GDP/per capital below 08 levels.
The economists here are still hoping that the relaxation of interest rates will solve all our problems (we are truly fucked).
Have no imagination = happy. The government will take care of us.
I try to put it simply:
✅ Government spending is bad for the economy.
✅ Everything the government does is bad, and shit. How does it promote growth in the long run?
✅ Government makes everything worse in the long run.
The above chart will go bonkers soon. Why bother even trying? Small companies are in big trouble.
Cash running low.
High-interest rates. It is tough to get loans. (Not a problem for bigger companies)
Demand soft.
Costs up.
Resiliency… Vanishing.
Even if you have “work,” you can’t find good people.
Small business owners are passionate about their work. They are obsessed with it, and they are driven more by this obsession than by economic rationality. Now, the financial realities are hitting hard.
I put a few anecdotal stories about companies that stop because it just doesn’t make sense to do good (in the end). Everything is shit nowadays - look around? If you don’t feel like this, please elaborate in your comments.
Many of the entrepreneurs I meet nowadays are telling me the same shit I have been lecturing here on the internet for the past five years: “holy shit, everything is shit nowadays,” and “Government debt is out of hand.” “One more year, then I quit.” “Save money, then get the fuck out”. This is extremely worrying. I used to be the only whining mofo, but now, suddenly, everybody is whining. WHINING = LOSING.
Here I am, spitting this shit in my office. Should I do something useful? Why bother?
This silent depression is getting out of hand. We need more people to say fuck this shit and grow a pair.
Good people are the lifeblood of success in business and also for a nation. People will win in the long run. No matter how shit the economy looks, no matter how stupid our leaders are, people working together will overcome everything.
This is our strength, our resilience, and our hope. Together, we can thrive.
Sources and shit:
https://yle.fi/a/74-20080149
https://www.hs.fi/kotimaa/turku/art-2000010258794.html
https://www.hs.fi/kaupunki/helsinki/art-2000010272585.html