Reacting in Tough Times
The stock market has cratered. GDP figures are negative. The outlook is bleak. While some are playing the blame game, you have to deal with the new realities every day.
Like many of you, our clients have reacted to the credit crunch and the continuing decline in spending. Here are a few examples of steps they’ve taken so far:
- A construction-related business has decided to unload any excess inventory in the warehouse by selling it through the Internet. This should make their end-of-year physical inventory easier, clean out some space for new materials, and generate cash flow.
- A service business has reduced the last steps for on-boarding new clients, shortening the documentation process for clients to go live. This approach hopefully will reduce the risk of losing a client at the last moment and speed up the billable period.
- A marketing agency has redoubled its sales efforts. This means more networking, greater attendance to industry events, and the calling-in of some favors. These efforts are designed to offset the potential loss of clients in coming months.
- A video production company has lost three people through normal attrition since the summer. Some of their development and production duties have been assumed by others internally and others outsourced. But they have held off hiring full-time replacements.
Many industries will have no choice but to cut jobs. A recent Boston Business Journal survey estimated that 7,200 jobs will be lost in finance alone in New England. Nationally, the manufacturers and distributors of high-ticket items like big boats and automobiles will surely suffer. Most small to medium-size businesses will tighten up and try to survive. More than likely, the ones that do will emerge leaner and stronger, ready to take advantage of the inevitable upturn in 2009. Mike Oleksak 2008
