Think Small

I don’t know about you, but I’m not getting any bailout money. I’m also not ordering any private jets, hosting any Super Bowl parties or redecorating my office to the tune of $50,000. I’m also not cutting my workforce by 10%.

The responses to current economic conditions dramatically spotlight the difference between most big companies and most small operators. But, as we see from our Costco article on Page 8, a sense of responsibility for employees, vendors and our communities is not at odds with being a large company. As Costco CEO Jim Sinegal exemplifies, if you’re successful, you can better resist the pressure of Wall Street and/or your investors; if you are not successful, the money guys are completely in control.

If a big radio company is not successful, it’s rarely a case of gross incompetence. Usually it’s a case of a flawed business plan—not understanding the consequences of being national in a local industry. No matter the reason, weakness puts the capitalists firmly in the driver’s seat.

As Mr. Sinegal puts it, “People in that business are trying to make money between now and next Thursday.”

Every day, too many good radio people are broomed in the name of fiscal responsibility. I’ve run radio stations and other businesses, and I can find lots of other ways to cut back before I hit the payroll. (This assumes that I have a reasonable staff level to begin with.) I might still have to hit the payroll, but by making tough calls elsewhere first, I can minimize the human toll.

Putting aside for a moment the consequences to those who are put out of work, the practice could seriously damage our business when we need it least. Formula music radio cannot compete with new media, but compelling personalities can. (That includes you, Mr. Limbaugh.)

And to those who are cutting successful sellers because they make “too much money”: You are just crazy.

Let’s do all we can, at every level, to preserve the strength of our business. I urge our leading radio companies to halt the bloodshed, reset your priorities and put people first.