Finding Sure Footing In An Uncertain Economy

Perilous economic times can shipwreck your business in mere moments. You can't avoid the storms of life, but your business can survive -- even thrive -- if you take steps now to stay afloat.

If you run your own company, you can’t help but notice that the current economic crisis could have a profound affect in the way you manage your business: from having enough cash on hand to meet payroll, to securing a line of credit to buy equipment, boost your inventory, or to meet monthly expenses. Likely, we haven’t seen the bottom of the market yet, something that continues to cause much fear and consternation around the globe.

A lot of what is going on today is well beyond your control and may, indeed, be as a result of what is taking place in markets beyond your own country’s borders. Never before has the global market been so tightly woven together, a double-edge sword that can lift all boats in good times and just as certainly sink the entire fleet in bad times.

Plan While You Can

Business owners know that in order to navigate the rough seas, a plan of action must be drawn up to avoid being pulled down into the financial vortex. Those plans must include keeping day to day operations going, promoting the business, and planning for the future especially in anticipation of better days ahead. Oftentimes when we’re in the middle of a crisis, it is virtually impossible to look beyond what is happening by envisioning that better days are coming. Having the foresight to plan for a rebound can certainly improve your company’s picture for the long term.

Today, however, there are enough troubles to handle, challenges which must be met and overcome one by one, to shake even the most confident person to the core.  Gaining the upper hand during these trying times will mean that your business will continue to survive, if not thrive, provided you keep your head upon your shoulder and refuse to make any decision in haste.

The following are five tips that can help your business navigate the current financial crisis:

Team Up — I write extensively for the automotive industry and have been witnessing a trend lately that can help many companies survive the current downturn, indeed succeed for the long run.

Specifically, though companies are not necessarily merging, many have chosen to forge business partnerships to meet specific needs. For example, Chrysler and Volkswagen agreed in 2005 that Chrysler would supply the German automaker with a minivan to sell in the US. The Routan is on the market, a vehicle that fills an important gap in the VW line up, while allowing Chrysler to maintain production capacity at one of its plants.

You aren’t an automaker, but you may have a service or a product you could share with another company. Consider developing a mutually beneficial agreement that will carry you both through this current storm, a temporary business relationship that ends at a time agreed upon by both parties — nurture your partnerships!

Contingency Plan – If you were to lose a major customer tomorrow, how would that event affect your business? Although we plan to succeed, part of being successful in business is to recognize that if a major shift in business were to take place, you’d already have a plan in place to address those changes. Your company may have a plan in face to weather a catastrophe (e.g., fire or earthquake), but do you have a scaled down plan in place that addresses losing a customer?

Sometimes clients send out signals that they are having problems including taking longer than normal to pay their invoices. Get with your Accounting Department to learn who is falling behind, but be slow to renegotiate terms because a bankrupt business may never pay what they owe you.

Consolidate Operations — Nonperforming assets should be sold, business units that aren’t performing might be discontinued, and departments can be combined to bring forth greater efficiencies.

But, before you consider tossing your most valuable assets — people – look for ways to streamline expenses including trimming the fat from the phone bill, reducing energy costs, reviewing travel expenses, overhauling your advertising budget, securing credit while you can, build up equity, pay down debt, and convert adjustable rate loans to a fixed rate.

Regarding advertising, pare this expense very carefully. You still need to promote your business which includes sponsoring community events, pursuing new customers, and telling current customers what you have to offer to them. With a recession, you have much more latitude where your advertising monies will be spent; shop around and negotiate the most favorable deal for your business. Keep up with your SEO blogging.

Cash Is King – In a down market where credit is difficult (and expensive) to obtain, businesses with a lot of cash on hand are in the best position to weather the storm. Cash will also allow you to step in and snap up other businesses at prices well below the market rate, putting your company in a position to quickly expand when the market recovers.

Right now, assets are underpriced and some of your competitors may be failing; with plenty of cash on hand you’re in a position to buy, buy, buy!

Downsize Through Attrition, Hire Contractors — If your company is in a position where payroll must be cut, try to reduce staff through attrition first. Next, offer early retirement or an incentive package to help others move on, but do everything within your means to keep your best people hired. Tread softly because you don’t want to spook your best employees who might jump ship if they think that your boat is ready to sink.

If you find that you need new personnel to fill vacancies, use contractors and temporary workers to supplement your workforce — a corps of last hired, first fired people who won’t sink your company’s morale if they are let go. When the economy improves, offer permanent work to your best supplemental employees.

These Are The Best Of Times, These Are The Worst Of Times

To paraphrase Charles Dickens, these are the best of times for some companies but they are also the worst of times for other businesses. You probably already know where your business stands at the moment, but that doesn’t mean you’ll find yourself in the same position in just a few months time. Inaction will sink your business, but aggressive planning will just as certainly give you the opportunity to not only survive tough times, but to thrive.

Sarah Palin Rocks Saint Louis

Okay, I admit it: I’m in the tank for Sarah Palin.

Unlike the mainstream media who, for the most part, pretends that they are impartial, I’m not — at least when it comes to political reporting, a topic I rarely cover. In my opinion, I believe that Sarah Palin is the most refreshing of the four candidates on this year’s Prez-VP ticket.

I am a registered Republican, but more importantly than that I am a conservative. Above even that, I’m a Christian and try to look at politics through my spiritual lens. This doesn’t mean that I am readily predictable in my political beliefs, rather I have certain expectations when it comes to a candidate and Sarah Palin is the rare person who meets most of mine. I’m not the type of person who will even consider a Democratic candidate, choosing to go third party if the Republican Party gets flaky and offers up a closet liberal instead.

Holding Back Sarah Palin

Yesterday, I was waiting in nervous anticipation for the debate, praying throughout the day for Governor Palin that she would find her voice in time to take on Joe Biden. I had seen snippets of her interview with Katie Couric recently and was, like many, disappointed on how poorly she performed. However, I also felt that she was being held back by the McCain camp who had been on the defensive mode too long, making it difficult for her to be just herself.

Leading up to the 9 p.m. (ET) start, I watched the Bill O’Reilly show (The Factor) which only stirred up my anticipation. The flamboyant O’Reilly can be difficult to watch and last night he was all that and more, letting Rep. Barney Frank have it with both barrels over the congressman’s involvement in the Fannie Mae debacle. By the time the interview was over I was on edge, wanting to put that boisterous confrontation behind me and enjoy the debate.

A Compromised Moderator?

I was also bothered by the news that the moderator, Gwen Ifill, had failed to disclose that she was writing a book that is favorable to Barack Obama, a publication that is to be released on Inauguration Day, coinciding with what some hope will be Obama’s ascent to the presidency. In my opinion, Ifill should have recused herself, but since the McCain camp didn’t demand that she do so, she went ahead and moderated. FYI – Ifill did a fabulous job, remaining impartial throughout the debate and keeping everything moving like clockwork.

Without rehashing every point made last night I believe that both candidates performed well, though I take exception to some of Biden’s claims, particularly relating to McCain’s maverick ways. McCain is the reason why so many conservatives were on the sidelines until he named Sarah Palin as his running mate, a politician who has long irked people for crossing party lines and thumbing his nose at established Republican practices. For better or for worse, McCain crossed party lines more frequently than Biden and certainly much more often than the junior senator from Illinois.

Sarah Palin — Mainstream American

Throughout the debate, I found Sarah to be confident, poised, easy to understand, knowledgeable and most definitely someone who walks in the same shoes that the average American walks in. Quite easily, I believe that Sarah can relate to us and we can relate to her, unless you’re an elitist, an avowed liberal, or simply someone who cannot stand the woman.

Harnessing her experience as governor, we learned that Mrs. Palin works across party lines, was able to get the oil companies to pass some of their profits to Alaskans, and has plenty of executive and leadership experience dating back two decades when she first started out as a PTA mom. Sarah held her own when it came to world affairs, correcting Biden on several issues including Obama’s deplorable refusal to acknowledge that the Iraqi surge was a success, articulating that a troop build up plan tailor made for Afghanistan was necessary, and making an impassionate case for our country to stand up to Iran and defend Israel if need be.

When the debate was over, both candidates were standing, but I must say that Palin exceeded expectations while Biden performed as expected. This doesn’t mean that I’m taking anything away from Joe Biden, I’m simply recognizing that he have his game day plan in place or risk losing to the governor.

At the end, the candidates shook hands, talked with Gwen Ifill, and had their families come up on stage to meet each other. That last act was priceless, a rare public display of cordiality between political families.

Will The Veepstakes Help?

Will the Veep debate help the McCain/Palin ticket? That is hard to say at this point. Clearly, Governor Palin allayed fears some people had about her, proving once again that she is smart, witty, fun, and just the right person to stand with John McCain should he become president. No doubt, I believe that the governor is a fast learner and, if something terrible happened to President McCain, she’d be able to step right in and command our nation – with God’s help, of course!