Commentary: Seeking out advice can help in tough economic times

Looking ahead to 2008 is frankly scary.

Some businesses will stick their heads in the sand rather than face the tough challenges ahead. Others will seek advice from peers, colleagues and industry experts. These brave business owners will likely make smarter decisions and position their business for growth when the economy strengthens.

Tom Zwirlein, director of the Southern Colorado Economic Forum at the University of Colorado at Colorado Springs, doesn't see much improvement in the local job picture for 2008.

"The fallout continues from the sub-prime lending crisis, the housing market remains soft, troops are serving longer deployments in Iraq and Afghanistan and a good portion of the anticipated influx of troops from the BRAC (base realignment and closure) changes aren't expected to occur until 2009," he said. "All this means that local economic growth in 2008 will be somewhat weaker than 2007 and this year hasn't been especially strong."

December is traditionally a time of reflection and planning, so I thought it would be helpful to review some of the sage advice shared in this column.

"Maintaining growth and profitability in the face of higher import costs is going to test many local companies," said Loren Lancaster, head of Core Capital Group's Electronics and Semiconductor Group. "Construction and business growth will continue to be curtailed by capital liquidity constraints through the first quarter. If domestic profits and stock prices weaken further, domestic travel and vacation activities will likely slip in 2008, having a negative impact on Colorado, especially this winter."

However, Lancaster remains positive about the overall state of the local and domestic economy for 2008 and 2009.

"I believe it is likely we are currently experiencing the worst of the sub-debt crisis correction, causing a reduction in domestic profits and economic growth rather than a recession," he said. "We are expecting a modest recovery in the housing sector throughout 2008."

When business slows, management often has time to look at their business in much more detail. It's a good time to review processes and procedures to find ways to improve productivity especially when resources are tight.

Now might be the time to integrate your systems to gain greater efficiency. Is the lack of integration having significant impact on your business?

Art Nutter, president and CEO of Taeus International said his company integrates its project management system with its accounting software to ensure maximized cash flow.

If you plan an integration project this year, Nutter said you should clearly define your objectives and avoid custom software because it never seems to be "finished." He recommends buying off- the-shelf software if you can, because the cost savings is worth the compromise.

Some companies might choose to evaluate their brand in the changing marketplace. Does your external image match your present business or has the public perception lagged your business growth?

Great brands always evoke the desired emotions and consistent perception in the minds of the market.

Carol Chapman, principal and co-founder of The Brand Ascension Group, advises companies that are starting a branding process to model highly successful brands, educate themselves and read everything. Be very clear about articulating the values of your company to employees and translate these into behaviors they can exude.

And, understand that branding is never complete.

During 2008, your company might be in a position to enter a new market which might require financing.

Rick Hobbs, CFO and COO at Aspen Technologies, advises companies looking to leverage their growth to expect to have to negotiate to get the best deal.

"No matter how strong you feel your numbers are you still have to fight for a good loan package," he said. "Too many companies undervalue their business and jump at the first numbers the bank offers because they are so relieved the bank will lend them money. Create a competitive environment by obtaining multiple quotes. This will allow you to negotiate the best deal."

Knowing what to pay attention to is critical to business survival and success, particularly in today's business environment. Key Performance Indicators give managers the time and energy needed to succeed by making the most of the time devoted to managing the business.

"Managers can spend more time running the company and less time focusing on historical financial results," said Chris Blees, CEO of BiggsKofford. "Having KPIs in place lets management hone in on the truly important metrics of the company and use those crucial success factors to manage the business."

Facing tough times alone is difficult. Perhaps a good New Year's resolution is to seek advice from those who have been through a downturn before.

Ann Snortland, principal of Snortland Communications, is the spokeswoman for the Peak Venture Group Middle-Market Entrepreneurs. She can be reached at asnortla@yahoo.com.

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