We updated the Rough Air Demand and Cost Index today. The business outlook is much more positive heading into 2010 than it was going into 2009. Although the job market continues to shed jobs, it is doing so at the slowest pace in two years. At the same time inflation has stayed in check which gives the Fed plenty of ammunition to keep interest rates low. This could provide a good foundation for economic growth in 2010.

This is the toughest year in business I have experienced. I have been in the business world for the last twenty-five years, the last fifteen have been as a business owner. The economic and market challenges have spread far and wide. It is difficult to find anyone in business who has not been impacted by the downturn, even businesses that I thought were impermeable to recession have seen sales decline and profits squeezed. Although it has been an extremely challenging year, it has been a great year for re-learning some basic business lessons.

Lesson number one, cash really is king. Every business owner I know spends a great deal of time trying to manage their cash flow. When things slow down paying attention to cash flow is critical. You must be constantly looking at the road ahead to understand what your short term cash needs are, and where the money will come from to cover those needs. The larger your business is the more difficult managing cash becomes. When my wife and I started our business three years ago managing cash was relatively simple, now that we have three businesses operating out of three locations with 20 employees, things have gotten a bit more complex. Understanding our short-term capital requirements, and how we will fund them has been critical.

The second lesson for me this year has been that you do need to work on your business, but you also likely have to work in it. Too many people approach entrepreneurship with the gilded notion that they will be able to operate solely as the shielded CEO only focused on big picture items and never having to get their hands dirty. Trust me, it just doesn’t work that way in the real world. The most effective entrepreneurs I know are never afraid to roll up their sleeves and jump in to help get the job done. Sure you need to work on the big picture items, that’s what evenings and weekends are for; however, if you are approaching business ownership with the idea you will not have to put in the time or effort, then you likely need to reconsider the prospect of business ownership.

My final big lesson of the year has been that no one will care about your business as much as you. This lesson isn’t new, I have always known this, but in a year when we seem to spend more time staying afloat as opposed to moving ahead it becomes apparent that no one will ever be as committed as you are to your organizations success. Few people around you, friends, employees or vendors will understand the stress a person undertakes when he puts a significant amount of personal capital at risk to chase a dream. When things go south those that have appeared to be on your side will quickly start running for the doors. At the first signs of difficulty many employees will throw their loyalty out the window and many vendors will become difficult to work with. On your path to entrepreneurship finding people who will truly commit themselves to your dream, and your success are few and far between.

Without a doubt this has been one tough year, and I don’t know about you, but I plan on taking the lessons I have learned in 2009, and carrying them and my businesses into the future.