Much of today's economic environment can be compared to the earth's natural environment, where often chaos and disaster can produce beneficial results. In the natural world, where would we be if the forest, algae and the rest of the foliage along with all of the animal life were to continue to grow unchecked and untested? In the natural environment of our world, if there are no natural disasters to cull out, clean up and rejuvenate the forest, the entire eco system becomes weak, withers and dies. It has been observed many times that at the time, lightning, floods, fire, wind and rain can have devastating effects, but over the long run we see that all of these disasters produce benefits which at the time we cannot see. Just as it is in nature, I believe that economic disaster can produce long term benefits even though at the time chaos and disaster are all that can be seen.

It seems that every 7 to 10 years our economy goes through a "severely unnatural disaster". I believe that this cycle of disaster is a completely natural phenomenon. Just like an overgrown forest, the economic eco system becomes overgrown with lofty positions, vague business practices, and loose accounting. I believe that the economic disaster we face today is part of the natural process of culling out, cleaning up and rejuvenating our financial eco system so that the entire economy does not wither and die. I have personally seen this happen 4 times before, and through every disaster, I've found that whenever an economic door is closed, a window is opened.

In today's economy these windows are opening faster than ever before. In the disaster of the 80's recovery occurred in 36 months, in the 90's 28 months, and in 2001 recovery occurred after 18 months. Given this historical perspective, I believe that the recovery of the current recession could take less than a year. Yet what really irks me is how so many experts believe that big business is the answer to the question of how to fuel the recovery. Congress has approved billions of dollars of taxpayer's money to be given to the car companies and financial institutions, while virtually ignoring the largest producers of employment in our country, the small businesses. When last I checked, nearly all big businesses have laid off tens of thousands of people. What has all the financial bailout done except help to exploit the people who have worked at these companies? Are we not advocating simply seeking a profit at all costs at the expense of people?

Whenever you ask a small business owner about their motivation when it comes to their business, invariably you will find that motivation comes less from a sense of wanting profit for the sake of greed, but from a sense of responsibility to their employees, their customers and their family. Come on experts and congress! Let's start to bail out the 5 million small business owners from their crisis. Are there not 300,000 small businesses filing for bankruptcy or simply closing up shop monthly? Shouldn't the government provide assistance to small businesses like they did with Bear Stearns, and AIG? I guarantee that the small business owner will not spend the money on bonuses or to pay down debt. They will create new markets, and bring new products services and innovation to existing markets, and in order to do this, they will need to hire employees to get the job done. If we can do this right, we have the opportunity to turn this economy, and this country around.

But we as owners and managers have a responsibility as well. We need to think of different and innovative ways of generating wages so that we can keep our people working, keep up morale, and keep people thinking and contributing. Let's turn our business models into circles where everyone participates, not pyramids of delusion that lead from the top down. Leading from the top down only works when you share your vision, and everyone in the company comes together to help. Like a forest fire in the natural world, in order to put out the fire, everyone must bring a bucket of water if we are to put out this economic disaster.

This economic disaster will pass. History has shown this to be true countless times. If you understand this, and understand that this is a time that should be taken advantage of, when the weak and overgrown parts of our economy have been culled from the economic environment, the small business owner will be poised to take advantage of a great recovery, and will end up stronger in the long run. It may take some retooling of your thinking, and it may take some assistance, but in the long run the benefits will outlast this short term disaster.

-Tom Markel

CEO iBank.com