Bob Phibbs, the Retail Doctor® blog at Retaildoc.com

I’m speaking this Friday morning at the Economic Summit in Richmond, Virginia and the message I’ll have for them is the same I give to you now. No matter what is going on in the world – it is up to you to make the sale – not the government, Palin, Couric, Obama or the weather. We have got to remain focused on the customer on the phone, walking in the door, sending an email. Only then can we get out of this hysteria that is making for great ratings and sleepless nights.

The lesson to business owners everywhere is simple. When your market has moved or changed, change with them but don’t do more of the same. (Remember Lehman Brothers last October boasted they were buying even more of the junk loans that were troublesome – now who’s boasting?) True leaders find where they should be going forward, not grasping at cones.

“SALES WILL INCREASE.” What is wrong with that? Do we still have the rah-rah attitude of the 80′s that only double-digit growth is valid? What’s wrong with stable or slight increases? Nothing. But you’ll never know if you read the online stories or gosh forbid turn on the cable news channel or watch the teaser for the local news, “Get Ready – Worst Holiday Season EVER – Tonight At 11.”

Second, we as small business owners have got to make a profit. The days of taking out a home equity loan to support a failed business model should be done. The days of starting a business because your husband/wife “needs something to do” are done. So too are the days of hiring your friends because you are comfortable with them. If you can’t fire them, you shouldn’t be hiring them. You have to make a profit. The lessons are clear for mom & pop businesses – don’t assume things will magically turn around. Sure the government swooped in and saved these giants but there’s nobody going to save you but you.

But what he missed was showing Stephanie how much of her money was sitting there on the floor. He should have had them do an inventory by category (at retail prices) and compare her sales to inventory to find her turn. It’s one of the most obvious basics to understanding retail profitability

No, people shop to feel better about themselves. This isn’t some new revelation from Paco Underhill, it is what fuels retail. The retailers who understand this are hiring better and creating exceptional experiences for their customers. Those who don’t are asking, “What happened?”

Why is it that such a rumor could devastate a major airline? People want to believe the worst. Reality shows have ramped up the hysteria about everything. Hysteria is the new calm.

I can hear those analyticals out there, “You don’t understand Bob, that store is costing me money every day it doesn’t open. It’s hard to get an opening crew.” No you don’t understand.