Archive for the ‘Recession’ Category
Friday, June 4th, 2010 |
This economic update from Business/News & Views shows that, slowly as it may be, prosperity is returning to the United States’ economy. Here’s an excerpt from the article:
The U.S economy is pulling out of the economic malaise of the past two years and is firmly on the path to economic recovery. The seven economic indicators represented in this report have been moving ever-so-slowly but steadily in an upward direction. This month five out of the seven indicators have shown significant positive change pointing to a strong economic recovery.
To see the graphs and my complete analysis, read the full article: Prosperity Returns
Posted in Economy, Recession | No Comments »
Friday, May 28th, 2010 |
May’s issue of Business/News & Views® brings a bevy of great advice – from how to be a peerless competitor to defining your business’ future to helping shape the futures of graduates.
David Weatherholt brings great economic news, as he says that Prosperity Returns. For businesses looking to find new markets, we have news of a free international and trade seminar sponsored by the SBA.
And lastly, don’t miss out on some helpful technology tips.
Read Now: May 2010 Business/News & Views®
Posted in Alaska, Business Planning, Business/News&Views®, Economy, Recession, Small Business, Technology | No Comments »
Tuesday, May 4th, 2010 |
David Weatherholt is joined by two guests, gubernatorial candidate Ralph Samuels and Todd Clark, president of DenaliTEK. Ralph Samuels addresses the roles of government and business and why he wants to be governor.
This “Getting Down to Business” podcast inaugurates a new monthly segment headed by Todd Clark called The IT ProAdvisor. Todd delves into the importance of backing up your data – and the resources required to address this important issue.
David also brings some worrying news about the economy – that the current recession is well-above the average length for post-WWII recessions. Listen to learn what this might mean for your business.
Listen or download below:
Business in Alaska III
Posted in Economy, Getting Down to Business, Government, Recession, Technology | No Comments »
Friday, April 2nd, 2010 |
In February, I suggested we were in a Slow Motion Recovery. While I hate to bear bad news, I now believe we are in a Stalled Recovery. In the worst-case scenario, we may be headed for a double-dip recession. Don’t believe me? Read my full article, complete with charts and explanations here: Stalled Recovery. (Trust me, I don’t want to believe what I’m saying, either.)
Posted in Economy, Recession | No Comments »
Wednesday, March 3rd, 2010 |
My analysis about the economy is that it is in a Slow Motion Recovery. We have turned a corner, and the largest, most resilient economy in the world is now refreshed, healthy and ready to move to greater heights. But it won’t happen immediately.
For the full analysis, along with graphs for leading economic indicators, read the full economic summary here: “Slow Motion Recovery“
Posted in Economy, Recession | 1 Comment »
Thursday, January 21st, 2010 |
Using key economic indicators, I’ve prepared my monthly Economic News Summary. I’ve poured over the graphs and numbers to bring you my analysis and predictions. Here’s an excerpt:
The student turns into the master? The Federal Reserve pumped millions of dollars into the economy as chairman Ben Bernanke, an expert on the Great Depression of the 1930’s, learned from mistakes made then. The fear with his approach was that inflation would run wild. So far inflation remains low (see link below); the banking system has been stabilized, and moderate growth has returned.
Read the entire January 2010 Economic News Summary
Posted in Economy, Recession | No Comments »
Sunday, January 10th, 2010 |
In this first “Getting Down to Business” of 2010, Dave interviews Todd Clark, founder of DenakiTEK, an Anchorage-based IT-maintenance, consulting and technology firm. Todd started the company nine years ago and discusses the road he’s taken to success.
Todd credits a great mission and vision statement with the successful growth of his company. Amanda Cullen, of Zoo in a Jungle Marketing for Small Business, joins the show and discusses how to create mission and visions statements that are effective for the organization along with how to use them as marketing tools.
Dave also gives a news update for small businesses, including tips for how to make your website great.
Listen or download below:
Focus on DenaliTEK
Posted in Entrepreneurs, Getting Down to Business, Recession, Small Business | No Comments »
Wednesday, November 18th, 2009 |
In the November 2009 issue of Business/News & Views®, David Weatherholt brings us good news about the economy in a thorough analysis of the quarter’s economic indicators. In his editorial, Dave writes on entrepreneurs, heroes and the power of necessity.
Amanda Cullen writes about relationship marketing and how developing relationships with your customers encourages them to buy more and refer more.
Read Now: Business/News & Views® – November 2009
Posted in Business/News&Views®, Economy, Marketing, Recession | No Comments »
Monday, November 2nd, 2009 |
On his radio show “Getting Down to Business,” David Weatherholt talks with Bob Poe, gubernatorial candidate for Alaska. Poe discusses his views on the relationship between government and small business– what it looks like currently and what he thinks it should be. This is a great opportunity for small businesses in Alaska to hear the candidate talk about issues affecting their livelihoods.
Also, David speaks with the deputy director of the SBA about the changes enacted last week by the SBA program. Finally, David introduces the show with a history of recessions, how government intervention has helped or hurt the economy and why we no longer call them “economic panics.”
All considered, this episode of “Getting Down to Business” is full of essential knowledge for small businesses.
Alaska State Government and Small Business
Posted in Alaska, Getting Down to Business, Recession, Small Business | No Comments »
Friday, October 23rd, 2009 |
What does it cost?
Have you ever gone to a local store because of their advertisement? And have you been disappointed by the overall customer experience?
The company, you add the name, just wasted valuable advertising dollars on poor customer service. Buy low. Sell high. Keep the difference. Customer service is an expense that increases businesses costs, the buy part of the equation and reduces the difference. Businesses face a myriad of costs from credit, insurance, bank and credit card fees, labor, shipping, travel, taxes and now add the cost of customer service, wow!
If you can pass all of these costs along to your customers and remain competitive, great. If not, then your profit margin takes a hit. In business someone has to pay every cost (although the government is trying to change that). The simple choice is; either you or your customer. If the business does not pass a cost along to the customers, then they are paying. The question, are your pockets that deep? Will your customers accept these costs?
There is a way to take charge and reduce businesses expenses. These are scary times to be in business and determining the real cost of doing business may be something you would rather not know. The good news is that a close examination of business expenses will identify areas that are controllable. Armed with this information, a plan can be developed to trim costs and increase profits.
Customer Service is one controllable expense that, when addressed, will produce a win/win for you and your customer. Advertising should always be looked at as an investment in your business. Creating and implementing effective advertisement is a great way to increase sales. You are buying leads to interested potential customers. Customer service converts these leads to sales.
If the advertisement effectively attracts potential new customers, it has done its job. If this potential client is converted to a customer returning again and again, then your investment has paid off. If, however, a potential customer has a bad buying experience, then your investment in advertising has turned into a business expense that should be reduced.
The value of a new customer can be calculated, and that final number may surprising. In a simple example of a restaurant bringing only $10 per customer means that single customer represents over $1,500. If you spend $5,000 on an advertising campaign that produces 10 new customers…well it doesn’t take an MBA to figure out this was a good business decision. Using the “New Customer Value” worksheet is the tool needed to calculate the value of a new customer. The sheet is available in two formats, an Excel spreadsheet containing formulas and a PDF file for hand calculation. Click to download below:
Value of a Customer Worksheet (Adobe PDF)
Value of a Customer Worksheet (Microsoft Excel)
During economic downturns you will have time to closely examine your business, make corrections, and be ready for the inevitable upturn, returning with a leaner, more profitable company. Knowing the value of a customer, new and old may not only pleasantly surprise you but become a helpful tool for measuring your advertising investment against the benefits produced. Your staff can see the economic value of providing good customer service, which promotes the success of your business, moving it to the next level.
Posted in Customers, Marketing, Recession, Reducing Business Expenses | No Comments »
Saturday, September 12th, 2009 |
The recession is finally heading towards Alaska, but Dave doesn’t want you to be pessimistic. He wants you to be prepared. To help you with that, he provides advice on cutting expenses and unnecessary costs in your business.
In the news, Dave talks about the recession’s effects on Alaska’s tourism industry and some competition for the Alaska Pipeline. And Dave’s guest is Ralph Swan, sales manager for Swan Employer Services.
Listen or download below:
Preparing for an Economic Downturn
Posted in Getting Down to Business, Recession, Small Business | No Comments »
Saturday, August 29th, 2009 |
Dave calls on all “Getting Down to Business” listeners to devote some time to long-term business planning. And, of course, he gives them advice and tools to plan effectively. Gerhard Vierthaler with Value Strategy Group explains the SWOT analysis to Dave’s listeners. SWOT stands for Strengths, Weaknesses, Opportunities and Threats and is a long-term planning analysis tool.
Long term planning becomes especially important during a recession. So, pull up a chair and let Dave give you Advice You Can Use.
Listen or download below:
Long Term Business Planning
Posted in Business Planning, Getting Down to Business, Recession, Small Business | No Comments »
Saturday, August 15th, 2009 |
In the August 2009 issue of Business/News & Views®, small businesses will find a wealth of information about building website traffic, changes that will dramatically affect the accounting industry and how to protect your brand on the internet.
David Weatherholt introduces readers to XBRL, the revolution in accounting. Amanda Cullen provides tips for increasing traffic to your website.
Read now: Business/News & Views® – August 2009
Posted in Business/News&Views®, Finance, Marketing, Recession, Small Business | No Comments »
Tuesday, July 14th, 2009 |
Over the past eight months, we have witnessed economic upheaval not seen since the 1980’s, over twenty years ago. The speed of the deterioration and lack of warning caught us all by surprise, leaving us in a state of shock and awe! Now that the shock has worn off and reality sets in, the surprise is that life goes on. This is a great opportunity to look at your business model, clearing away any debris from the economic storm, and prepare to move forward.
Winston Churchill, who understood turbulent times, said, “A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty.” We are now presented with a unique opportunity to take the time to examine meaningful changes in our business models.
Start by reviewing all expenses. Nothing is sacred- trim, trim, trim. Every penny trimmed is important, but keep in mind that trimming expenses alone will not lead to a better business model. Trimming 100 percent of expenses is certainly possible but would also result in closing your doors. This may be the best option but should not be taken without looking at all available options and preparing to weather this economic storm. Let’s look for some opportunities.
Look hard at bank fees. If your business has an “analysis account” you may be surprised by the rate increases. Banks are businesses and need to make a profit, however, sit down with your banker and go over your statement line-by-line, ask questions and evaluate the options. You may be surprised at services that can be trimmed because they are redundant or not used.
Review telephone and cellular telephone accounts going over it line-by-line like your bank statement. You may find redundancies or items that are not used. For example unlimited texting is a great option but if a minimum number of text messages are actually sent then it would be cheaper to pay a per text message charge. Again, trim, trim, trim.
Talk to venders, and ask for prompt payment discounts. Discounting terms were frequently used to enhance cash flow but usage of this practice has declined. Don’t be afraid to ask.
If you lease space and are locked into a contract that was negotiated at higher rates in better times, then it may be a good time to sit down with your landlord and review the lease terms. They may be receptive to reasonable accommodations.
Compensation is an area that should be reviewed. Look for creative bonus opportunities that can create a win-win for you and your employees.
Review marketing and advertising expenses. Marketing expenses may look like a prime area for reducing overhead expenses, but remember the reason for this expense category. Marketing and advertising expenses should be viewed as buying customers. Measure every expenditure against the results produced (i.e., does it produce customers?) If it doesn’t, then pare down. If it does, you may need to do more of a good thing and even increase effective marketing.
Advertising spent on branding is hard to directly trace to new business. Branding is an effective part of your overall marketing campaign and may be a good reduction area, but don’t eliminate it completely.
Using an economic downturn to review expenses and trim, trim, trim is a great first step but is only half of the solution. Look hard at sales and revenue sources and add, add, add.
Cash today is better then cash tomorrow. This basic finance concept works and can be your incentive to provide discounts to your customers for early payments. Look for creative ways to reduce your accounts receivable.
Review all product/service categories, applying a simple cost benefit analysis and modify or eliminate product/services that don’t produce adequate benefits.
Be creative and look for new sales channels, getting your products/services to customers, such as using kiosks, the internet, dealers, or outside sales efforts.
Look for new products/services and business opportunities. Changing your business model is not bad. Every business that successfully makes it past their first five years usually has changed significantly from the business that started. In the beginning of a business, product/service knowledge was your advantage but now that you have demonstrated successes operating a business, look for ways to replicate that success by using your business experience to promote other product/service options.
Paying attention to changes in this economic climate is a good thing as long as it leads to healthy introspection, not fear. Hopefully, this article motives you to redirect that fear of the unknown or change using past successes to see the “opportunities in the difficulty.” What opportunities do you see?
Posted in Finance, Recession, Small Business | No Comments »
Monday, June 15th, 2009 |
In the June 2009 issue of Business/ News & Views®, David Weatherholt delivers a stirring op-ed to see the opportunity for cutting costs in this recession– there’s never been a better time to trim fat. Amanda Cullen explains how your existing customers create new customers for you. The Internet Tips & Tricks feature provides advice for small businesses on getting more websites to link to their websites.
Read now: Business/News & Views® – June 2009
Posted in Business/News&Views®, Customers, Entrepreneurs, Marketing, Recession, Reducing Business Expenses, Sales, Small Business | No Comments »
Monday, June 1st, 2009 |
“GM filed for Chapter 11 bankruptcy early Monday, marking the humbling of an American icon that once dominated the industry and setting up a high-stakes gamble for taxpayers.
Under the plan, the Obama administration will spend a bit more than $30 billion to fund the bankruptcy and in exchange receive 60% of GM’s stock, while the Canadian government will put in $9.5 billion for a 12% stake, senior administration officials said.”
As a taxpayer I’m not in favor of the “high-stakes” gamble made by the administration resulting in a 60% ownership stake in GM, while bondholders have again received the shaft. The administration has changed agreements i.e. bondholder agreements making it very unlikely that corporate bonds in GM will ever be purchased again eliminating a source of future funding. Will profits be able to carry the company and provide stockholders with a return on its investment? What do you think?
Posted in Recession | No Comments »
Tuesday, May 26th, 2009 |
Many mutual funds have a bond component and maybe your 401k is invested in a fund with a corporate bond component. If it is, then the administration is trying to force you to take thirty cents for every dollar of your original investment and placing you in the position of an unsecured creditor, way down the list in the event of a total liquidation, Chapter 7 Bankruptcy.
The administration is playing the bondholders against the workers. In other words the administration is trying to force you into accepting less for your investment and not what you agreed to when you originally lent the money, purchased the bond. They what to take your money and give it to the UAW, violating your underlying agreements and then adding insult to injury when you object, portraying you as the bad guy.
Some brave bond trading companies have taken a courageous stand against the administration by saying their investors, you and me, are secured creditors and should do better than thirty cents on the dollar. Standing up for bondholders should not be a courageous stand. After all, this is a fundamental funding source and an established way of doing business protected by underlying agreements. The administration’s heavy-handed tactics threatens the very core of the most successful economy the world has ever known, all the while making innocent people villains.
Posted in Recession | No Comments »
Friday, May 15th, 2009 |
Do your managers have the right financial tools they need to make sound decisions? Find out which tools are crucial in May 2009’s Business/News & Views®.
Also in this issue, David Weatherholt weighs in on the Chrysler bankruptcy and what effects it will have on the future of bonds. Internet Tips & Tricks provides some trend-spotting advice for your business.
Read Now: Business/News & Views® – May 2009
Posted in Business/News&Views®, Finance, Recession | No Comments »
Sunday, March 15th, 2009 |
David Weatherholt provides some great financial knowledge for the March 2009 issue of Business/News & Views®. He explains income statements in detail and discusses key economic indicators and why they matter.
Read Now: Business/News & Views® – March 2009M/a>
Posted in Business/News&Views®, Economy, Finance, Recession | No Comments »
Sunday, February 15th, 2009 |
In the February 2009 issue of Business/News & Views®, we show some love for the balance sheet by explaining Balance Sheet Basics. David Weatherholt weighs in with a heartening op-ed on the dynamic, resilient US economy, and Internet Tips & Tricks tells you all about the Google tools you don’t know.
Read Now: Business/News & Views® – February 2009
Posted in Business/News&Views®, Finance, Recession, Technology | No Comments »
Saturday, November 15th, 2008 |
In this second issue of Business/News & Views®, editor David Weatherholt compiles some timely (and timeless) articles for his readers. There is advice on improving customer loyalty to your e-commerce website, proof that recessions can be good for smart businesses, a treatise on capitalism vs. socialism and help for valuing your customers.
Read Now: Business/News & Views® – November 2008
Posted in Business/News&Views®, Recession, Small Business | No Comments »
Sunday, October 12th, 2008 |
In the October Business/News & Views®, David Weatherholt has assembled a stellar group of articles for your small business. From topics of relationship management to the economy to the importance of financial management, you will find a tip to help your business.
Read October Business/News & Views® now.
Posted in Business/News&Views®, Finance, Recession | No Comments »
