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2. Banking on Small Business. A recent piece in the Wall Street Journal makes the point that, while lending to businesses hasn’t dried up, banks are making loans on a case by case basis, looking at credit scores, past performance, and realistic revenue projections. Bottom line is that every small business needs to stay close to their banker these days. I am aware of at least one situation where a local bank had to pull back on an earlier written commitment because of the crisis in the banking world. I haven’t seen any existing credit lines called or cancelled, but that is not an unrealistic scenario. Mark Twain referred to a banker as someone who lends you his umbrella and then wants it back when it starts to rain. Well, it is raining now and the clouds on the horizon suggest a real gully washer is on the way. May be a good time to talk to that banker? For the WSJ article, click here. BTW: Don’t forget about the Economic Stimulus Act’s capital investment depreciation that is soon to expire. 3. Yellow Pages in the Red. Another WSJ article reported on the demise of the yellow-pages industry, citing the economic downturn, eroded ad dollars, and Google. Personally, I quit all yellow pages advertising many years back when I got tired of trying to keep track of all the different yellow-pages versions plus all the me-too companies. Then every year they tried to upsell us to bold type, then a half-inch ad, then graphics, then more category listings. I ended up pulling them all. Anyway, it wasn’t surprising to hear the yellow pages business model is under duress. I’m sure glad I’m not in the business of binding those. Click here for the full article.
4. Buyers Market. We saw a huge shakeout in the printing industry during
the last downturn, and smart bets would be on planning for more of the
same. The weak economy could offer a chance for stronger companies to get
ahead by jumping into the merger and acquisition field to build on
existing strengths. Here is a 5. Career Opportunities. Now may not seem like the best time to be promoting an industry that may be headed for some serious belt tightening. But, with unemployment at a record high, now may be the perfect time. If you had a bright young applicant walk in the door and you knew that he/she had the necessary skills and the enthusiasm to jump in with both feet, would you try to find a spot for that person? Maybe even look at replacing one of your weaker performers who has shown a lack of ability to keep up with the skills necessary to succeed in our industry today. Here is an article that promotes just that: Encouraging new blood in our industry via an entertaining and informative video production. Check it out here.
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