Plan for 2009: Seize some stars, mind purse strings

Your planning process for 2009 could be easy: Pull the covers up and stay in bed. Or, if you're more of a fighter, here from other business owners are several practical ideas for '09 - and, in some instances, for the rest of '08:

Seize some stars. "Competitors may be letting people go," says Karen Lennon, a highly successful entrepreneur who recently returned to her initial company, SomerCor 504, Inc., a Chicago-based packager of SBA loans, as a deal maker. "You can find some stars."

Palatine accountant Greg Dowell agrees. "As other companies downsize, you may find some key employees who suddenly are available," says Dowell, managing partner at Bass, Solomon & Dowell, LLP, a CPA firm.

Mind the purse strings. "So much of this is just common sense," Lennon says. "Cash flow keeps the doors open, so you have to stay on top of accounts receivable. You have to be very proactive. Customers are going through the same thing you are. Don't delay billing and collecting."

"Our receivables were going past 120 days, but we've really ramped it up," says Mary Bahr, president and creative director at MAB Advertising, Inc., Chicago. "I get much more involved. I look at receivables daily."

Bahr says her agency bills up front, partly to avoid "the ripple effect. When clients pay slower, so sometimes do we."

Bahr also suggests that businesses have credit lines in place - and tells of one "that pulled all its credit line and put the cash in a money-market account, just to be certain the cash would be there when needed."

Go back to the basics. "Re-examine your business' fundamentals," Dowell suggests. "What is it that makes your business unique? What is the core of your business philosophy? Get to know your customers (again)."

Talk to customers. "We're looking to over-communicate with our clients," says Bahr. "They all have bottom lines, just like we do. Our job is to make their lives easier," which is the message her agency's communications process is intended to deliver.

Listen, too. "What customers (and others) choose to say and not say can be extremely important," Lennon says.

Implement a 'no surprises' rule. "Share financial concerns with your CPA," Dowell says. "Keep your attorney apprised of any legal issues that develop. Discuss new strategies with your marketing adviser.

"Ask your bankers how your financing needs may be impacted by current developments. Let them know, as far in advance as possible, when you think you may need additional financing.

"Talk with your investors. Let them know how the business has been affected (by the economic crisis).

"Talk to employees, too," Dowell continues. "Share your business' challenges with them - and let them know that you're doing everything you can to remain competitive and viable."

Questions, comments to Jim Kendall, JKendall@121MarketingResources.com.

© 2008 121 Marketing Resources, Inc.