As 2010 has come to an end and we close out the first decade of the new millennium, I thought it appropriate to take a look back at that which was a challenging year indeed. While much remains uncertain going forward, I’d also like to share some thoughts regarding the year ahead in 2011. 

For most business owners, the past year was fraught with confusion, concern and uncertainty. The conclusion of the mid-term elections and nominal progress as to tax and other legislation provided little comfort and insufficient clarity as to the direction of the economy. Bank failures and a restrictive credit environment have and will likely continue to hamper business operations. The lack of a clearer direction for the economy left many business owners in a static mode. This, of course, affected numerous aspects of their business, to include hiring, marketing, expenditures for capital equipment, inventory buildup, business expansion, etc. While confidence is slowly on the rise, it will be a protracted process of building the level of momentum to truly indicate that we are on the downside of the recession. 

Moving forward into 2011, we see glimmers of encouragement. The Bush tax cuts have been extended for two years and the pork laden omnibus bill has been voted down. Bank lending has begun to increase, albeit at an anemic rate, and typically for better credits. Business confidence indexes have started to creep up, with a high degree of caution. There’s been a slow down in the number of new unemployment claims and selective businesses have begun to hire or, as a strategic alternative, take on temporary staffers. While there is no groundswell of enthusiasm, we’re seeing the early signs of sustained forward momentum. That momentum is fragile in nature and subject to any number of events that could slow or halt it.

Unfortunately, certain negative trends will continue in 2011. Business and personal bankruptcies, home foreclosures and bank failures will continue to negatively impact the economy. For those politicians newly elected or retained in the mid-term elections, much work lies ahead in crafting the strategies and laws that will hopefully sustain the recovery. All in all, 2011 is shaping up to be a pivotal year on many fronts. For businesses, many of which bear the scars of the recession, 2011 is a year to establish or fine tune business plans, practices and strategies. For those still struggling to secure sufficient financing resources, alternatives, such as those offered by Liquid Capital, should be considered. 

 Those would include:

• Accounts Receivable Factoring
• Purchase Order Financing
• Inventory Financing
• Equipment Leasing and Finance

As I work with clients, it is common in the discovery and due diligence process to identify other areas of need. They cover a wide spectrum encompassing, banking, legal, accounting, marketing, web presence, business plan development/modification, strategic business consulting, management practices, internal systems, technology, etc. Over the years, I’ve had the good fortune to meet many qualified professionals that provide valuable services. In early 2011, I plan to develop a resource center wherein, if you have a need to identify a professional in a given category, I would be happy to make the introduction. In many instances, the best outcome for the client is achieved through a joint collaboration. I look forward to making this resource available to you.

As in past years, I’m truly grateful for the many referrals I’ve received in 2010. Your confidence in me and the services I provide is gratifying indeed. I look forward to another year of assisting your prospects and clients with their financing needs as well as making valuable professional introductions. May the New Year bring you health, opportunity and good fortune.

Tom Stamborski
(847) 842.3300
tstamborski@liquidcapitalcorp.com

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