This document provides 20 tips for managing a business during a recession. It covers financial, staffing, technology, and marketing tips. Some key recommendations include cleaning up financial records and creating budgets, getting receivables under control, reviewing technology usage and replacement cycles, considering outsourcing IT functions, and continuing marketing efforts through the downturn.

1. A Few Reminders in Twenty Minutes JPTConsults, LLC 828-301-5597 1 Managing In a RecessionJoe Travaglini, PrincipalJPT Consults, LLC

2. Financial Tips JPTConsults, LLC 828-301-5597 2 #1Clean up and understand your current financials: Cash Position Income and Expenses Balance Sheet and Capital Needs #2 Make sure you have a current year budget which focuses on cash flow and income and expenses. If you do not have one, create it now! #3 Then create 3 year budgets for cash flow, income and expenses and capital needs so you know where you are going. Give me your business card if you want budget examples

3. More Financial Tips JPTConsults, LLC 828-301-5597 3 #4 Get a handle on your receivables by trying to generate an aging report. Then, assess the quality of each amount owed. You can assess them based on: Age – oldest are hardest to collect, consider writing off Amount – focus on larger receivables first to generate a shot of cash Relationship with the client – is this a good client who is suffering from their own cash flow issues or is it a difficult client? Work with the good clients first and get them on a payment plan, then tackle the toughies. “Be persistent but do not be a bully”

4. More Financial Tips JPTConsults, LLC 828-301-5597 4 #5 Do some preliminary work when accepting new clients or customers. Have written policies which clearly set out the terms of your payment expectations. Go over this information with the client or customer. Consider credit checks or asking for some amount of payment up front. #6 Determine the fiscal metrics of your business or organization. Examples include: Cost of goods sold Days of billing outstanding Average monthly payables Average donation per donor

5. Staffing Tips JPTConsults, LLC 828-301-5597 5 #7 If you need to reduce your staffing, make sure you have a plan or you may end up with the wrong people doing the wrong jobs. Jim Collins, who was the author of Good to Great recently wrote “The right people don’t need to be managed. The moment you feel the need to tightly manage someone, you’ve made a hiring mistake.” # 8 Consider alternatives to reducing staff: Reducing hours or job sharing Temporary salary freezes or reductions Voluntary or involuntary furloughs Reducing or eliminating benefits

6. More Staffing Tips JPTConsults, LLC 828-301-5597 6 #9 Retaining skilled and knowledgeable employees may actually save you money in the long run. #10 Avoid the “technician trap” and feel you have to cut positions and do everything yourself. Survival does not depend on how much you can take on yourself, it depends on how effectively you use the human resources at your disposal. #11Be open with your employees about the “brutal facts” of your business. Share information with them on your market, your financial metrics and the challenges your business is facing. Ask for their ideas. They may have ideas to help you.

7. Technology Tips JPTConsults, LLC 828-301-5597 7 #12 Review your current technology to see how it contributes to or hinders the effective operation of your organization. #13 Look for ways to leverage the technology to save employee time when they are completing tasks. For example, if you have printers, scanners and copiers which are not networked together, you are losing time and money. #14 Work with the vendor to see if they can provide more training or give you larger discounts on the upgrade. Today everything is negotiable in technology. #15 Consider extending the replacement cycle for your hardware. Desktop PC’s now last for 4 to 5 years if maintained, as do laser printers.

8. More Technology Tips JPTConsults, LLC 828-301-5597 8 #16 Consider outsourcing your hardware and network maintenance and help desk functions. This reduces the number of technology personnel and can free up your technology leaders to focus on managing technology resources and strategic planning. #17 Develop a technology plan looking out 3 years, especially if your business is heavily dependent on technology. Always assess new developments and products to see if they can improve the effectiveness, productivity and competitive advantage of your business. For example, use the Internet to expand the geographic reach of your business.

9. Marketing Tips JPTConsults, LLC 828-301-5597 9 #18 Do not stop marketing now! Now is the time to sharpen your focus and reach out to your client or customer base. You need to keep your business visible if it is to remain viable. #19 Continued and meaningful contact with your clients or customers can create “raving fans” who will send referrals to you. Go for Empathy, Get Real. #20 Refocus on the attributes of your business and assess what has worked and what needs to be retooled or discarded. Determine what sets you apart from your competition.