Why Some Entrepreneurs Will Miss the Recession

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President Obama used the financial crisis as his rationale for dumping billions of government cash into the system. There are all sorts of government projects out there for businesses to bid on. And there's Web sites like www.recovery.gov to help us get through the process. And even if we don't want to deal directly with the government, we can sell our products and services to the construction, health-care, energy, and education industries that are getting all this funding. What are we going to do once this recession's over and the government can't justify its spending? Actually go out and create demand and customers on our own? Good God, man, can you be serious?

This recession is wreaking havoc on my competitors, and for that I'm also grateful. There used to be dozens of other firms in the area that sold the kinds of products and services that we sell. Now there's just a handful. Thank you, Charles Darwin. I know that many of them sucked. But it took a significant drop-off in demand and a more competitive environment to prove me right. During the salad days, I competed against companies that were thinly staffed, technically challenged, and mismanaged. But, somehow they were surviving…and giving me headaches. Happily, that's all in the past now. Once growth returns, I am not looking forward to these guys coming back.

And I'm not alone. I know many other business owners who are profiting from the demise of mismanaged giants that have been victims of this recession. The gas station on the corner has a backlog of repair work thanks to the disappearance of so many of our auto dealerships. The crafts and home shops around the area have been busy since the Linens 'N Things at the strip mall went bust. Nice little coffee places are sprouting up replacing the Starbucks (SBUX) that have shut. Web sites selling electronics, run by small business owners from their homes and industrial parks across the country, are making more money since Circuit City (finally!) went belly up. The recession has created opportunities—some are taking advantage and some are missing the boat.

Uncle Joe is happy that the War is behind him. But he has good memories of those times. Most of us will be happy when this recession is finally behind us. But many will look back at these times with the same feelings as Uncle Joe. Me? I'll be happy when my daughter stops watching Bridezillas.

Gene Marks, CPA, is the owner of the Marks Group, which sells customer relationship, service, and financial management tools to small and midsize businesses. Marks is the author of four best-selling small business books and writes the popular "Penny Pincher's Almanac" syndicated column. He frequently speaks to business groups on penny-pinching topics. More penny-pinching advice from Marks can be found at www.quickerbetterwiser.com.

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