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 With
the challenging year of 2009 behind us, it’s once again time
to look forward to the New Year ahead. Forward planning has been
difficult at best, given the uncertainty as to financial and health
care legislation, tight credit markets, nominal consumer demand
and the corresponding reticence of many businesses in making commitments
as to hiring, capital expenditures, build up of inventory, etc.
The business
owner is in the ultimate “squeeze play” with
suppliers requiring up front payments and/or very narrow terms
and customers looking to stretch out terms as long as possible. While
economists vary as to the timing and degree of any sort of “recovery,” generally
they agree that signs of improvement will occur sometime in 2010.
However, the pace of recovery will, in all likelihood, be a slow
process. In reviewing their business plans, businesses
should be prudent in matching resources to growing demand while
not being too restrictive so as to put them in a less
than competitive position to seize new opportunities.
The availability of credit will continue to be an issue for many
businesses. Different variables will affect a given bank as to
underwriting parameters, covenants, terms and rates. For many businesses,
new and existing, the lack of or insufficiency of credit availability
will hamper their ability to fully capture future business opportunities. As
I have observed over the past year, many businesses will seek
out alternative financing sources such as factoring and purchase
order financing. Even if the business doesn’t have an urgent
need to utilize these strategies today, they would be well served
to learn what their options are and the positive effect it would
have on their business. Being prepared in advance is always
a wise business practice, and even more so in today’s credit-challenged
market.
During the
course of 2009, I had the opportunity to work with a variety
of companies. While each situation was generically
based on a need to enhance the company’s cash flow, each
had its own unique story. As a sign of the times, I was frequently
brought in at the request of a turnaround consulting group. With
the cooperation of the client’s bank and the client working
closely with the consultants to effectuate a strategic business
plan, I was able to structure a financing program that had a meaningful
effect on the company’s cash flow needs. Being part of the
team that assisted the client in turning the financial corner was
gratifying indeed.
In the year ahead, I wish you health, good fortune and prosperity.
May we all enjoy new opportunities in an improving economic environment.
Happy
New Year!!
Tom Stamborski
(847) 842.3300
tstamborski@liquidcapitalcorp.com
P.S. If you missed my previous e-bulletins, click here to view them. |
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Business Continuity Management
 In
one of my earlier E Bulletins, I highlighted Jim Christensen,
who is a Certified Business Continuity Planner. As
we enter the New Year, I thought it appropriate to
reprise his services.
Beyond
the financial challenges that businesses face, there
are numerous contingencies that can impair if not
halt their operational capabilities. This
is true in normal times, but is greatly accentuated
in a fragile economy. All too often, the distractions
that abound in managing a business in a difficult environment
result in either nominal continuity planning or no
planning at all. Disaster recovery, environmental
matters, communication integrity and protection of
critical data are all vital to the survival of a company. Add
to that the impact of unique events such as the flu
pandemic and you have a multitude of contingencies
to contend with. Additionally, in a recent development,
universal standards for continuity planning have become
a topical issue. Because of the mandate for larger
companies to have a defined plan, they are pushing
down the same requirement to their suppliers. This
is in an effort to have a coordinated plan amongst
all the parties.
In
working with his clients, Jim develops a plan that
is designed to minimize or eliminate the impact of
these events. Jim brings an organized and commonsense
approach to this mission critical initiative. To learn
more about this invaluable service, please visit Jim’s
web site, www.businesscontinuitymgt.com.
There is an online
survey that will help you assess the readiness
of your company in addressing this important issue.
You can also reach him at 815-477-3655 and jim@businesscontinuitymgt.com. |
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