The Leading Edge - Fall 2008 - (Page 5)

cover ScULPt yoUr bUSIneSS to B y ann M. g yn n SUrvIve and thrIve I n a challenging economy, most people tend to recoil a little. Fearful of what lies ahead, we cut back on our daily trips to Starbucks, cook at home or carpool to work. Businesses, however, should look at difficult economic times as a challenge to be proactive in their moves—a time to rethink, reshape and recreate their companies— finding ways not only to survive the downturn but ultimately to thrive. “People are open and receptive to change during a troubled economy. When everything is going well they look the other way,” says Norm Brodsky, founder of CitiStorage and seven previous start-ups. He also co-authors “Street Smarts,” the small business advice column in Inc. magazine. Two of his start-ups have come during recessions. “Downturns present new opportunities for businesses,” he says. Lara Lee of Jump Associates, a strategic growth consulting firm, agrees. “When fears of recession loom large, companies historically batten down the hatches and wait for the storm to pass,” says the former vice president of enthusiast services for Harley-Davidson. “Instead of fixating on risk and uncertainty, it is critical to focus on uncovering hidden opportunities, navigating unknown territory and being responsive to changing environments,” Lee says. dollars and sense Brodsky has specific suggestions for companies to turn around that “batten-down-the-hatch” mentality. First, he says, start thinking like a banker. Remember, receivables are, in effect, loans you’ve made to your customers, so keep an eye on the quality of your loan portfolio. Have a plan in place for how to deal with customers who stop paying bills on time. Options could include arranging new terms, applying pressure or terminating the account if necessary, Brodsky says. In addition, learn the right way to ask investors for money during today’s tight times and watch your cash flow like a hawk. Itamar Chalif, owner of Atlantic Capital Solutions, says he thinks one of the biggest mistakes business owners make, particularly when they start the company, is they assume business financing is challenging. “They tend to go with consumer-type financing or pay cash,” Chalif says. “There are a lot of financing options out there that involve taking out a home equity loan or borrowing against a continued on page 6 ThE LEadIng EdgE 5

Table of Contents Feed for the Digital Edition of The Leading Edge - Fall 2008

The Leading Edge - Fall 2008 Contents Sculpt Your Business to Survive and Thrive Protect Intellectual Property Outside the United States Complaints about Meetings? The Leading Edge Alliance Top 10 Misconceptions of Doing Business in Belgium In a Nutshell: Q&A

The Leading Edge - Fall 2008

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