Business Book Summaries

At any moment in time, every organization will be in the throes of change to a greater or lesser degree. Projects; tens, hundreds even thousands vie for resources, time and attention; concurrently striving to address defensive, offensive, expansion, growth, contraction and improvement pressures.

Business schools, research firms and consulting organizations proffer significant empirical research that at least 75% of all business projects or change initiatives fail to meet expectations, partly or wholly. Most, if not all analysis conducted on project failure examines how a project was managed and what went wrong… in other words looking at a specific change initiative or project as a Singularity!

My perspective differs somewhat, my research focused on Project Multiplicity within the context of Corporate Singularity. What does this mean…?

An idea, an imperative, an impulse or an order to grow, improve, or strengthen the organization occurs within the context or framework of the organization as a whole. Such initiatives seek to change, adjust or alter the very operating fabric of the organization in some way, some will be broad and sweeping while others will be limited and specialized. All are part and parcel of Corporate Singularity.

Corporate Singularity has two dimensions: The first is the 'operating state' of the organization now. The second is the 'operating state' of the organization as and when each initiative that is underway, planned or contemplated is injected, integrated or implemented into the organization. As each initiative completes, it becomes part of the 'operating fabric', a new now.

This dynamic, constantly evolving view of 'what is' and 'what will be' is Corporate Singularity. When leaders and strategists look out across the organization from the Corporate Singularity perspective they will see 'what is' and, in fact, see as many 'what will be' operating states as there are initiatives.

Except… Initiatives become 'projects' and Project Singularity is not Corporate Singularity. Viewing and managing a Project as a Singularity has advantages; it reduces complexity; enables focus and is attractive since it offers clear delineation of scope, costs, timing, resources, etc. These advantages; however, are limited to the perspective of those tasked with project delivery, after all, a singularity is far easier to envision and control.

Unfortunately, Project Singularity carries the burden of potential harm to the organization as a whole and, by extension, to the project at hand. These dangers are latent at the onset yet rear up quickly, complicating and impacting the orderly progression of the project from inception to implementation and beyond.

These harmful traits, in whole or part, can rip a good, worthy project to shreds. Essentially; projects will cost more, take longer, with lower quality, unsatisfactory acceptance and less than acceptable bottom line contribution.

Project Singularity begets Project Multiplicity. Simply put, projects follow other paths. They are subject to influences other than those that justified the project (initiative) for inclusion in Corporate Singularity. I label the major Project Multiplicity influences as follows:

Machiavellian Multiplicity: Turf wars, politics, competing egos and not-in-my-backyard perspectives dominate project decisions and actions… Corporate Singularity is of secondary importance, protectionism rules at the expense of Corporate Singularity…

Competing Multiplicity: Diametrically opposed objectives, rationale or plans; often focused on the same target for differing purposes… Multiple Viewpoints of Corporate Singularity, what it is, who owns it and why – who ever delivers a project first, wins…

Singularity Multiplicity: Silo viewpoints occlude reality and practicality, incremental singularities proliferate as disconnects surface… Corporate Singularity is open to interpretation; silos plug gaps and chasms of their own making with project solutions of their own making…

Multiplicity Generators: Reactive, insular responses to multiple demands of competing interests; resulting in too many projects, too often, each in isolation… Corporate Singularity becomes policy rather than process and, exception handling becomes the norm…each necessitating a project.

Assumptive Multiplicity: Compelling business case arguments usually "end" at out-of-scope boundaries; downstream and parallel impacts are rarely fully inclusive… Corporate Singularity has no boundaries, disconnects abound…'not in scope' cries echo everywhere.

Divergent Multiplicity: Corporate objectives are diluted, secondary to the need to personalize or customize according to whim or circumstance… Corporate Singularity infers commonality and standardization, entrepreneurial energy has to find a niche…'skunk works' fill the void.

These influences are indicative or symptomatic of hindrances to the mechanics of projects. They are representative of the negativity inherent in the dynamics, optics and politics that surround projects and without doubt, they usually preface disastrous project results.

About the Author: John Bolden (RMA, Mil C, C/MBB-ISSSP. F-IICM, F-IPMS) is renowned for value laden advice that stakeholders depend on when assessing the wisdom of investing billions. John's views and observations enable corporate leaders to ask the right questions, probe problematic answers and avoid surprises. He says: "If you would like to learn more about the seminar themes I speak to, types of consulting engagements and research that underpins my thinking, feel free to browse my web presence at http://www.TLIRGroup.com"

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Values and skills are of central importance in our working lives. This is the most basic consideration for everyone, whether CEO or rank-and-file employee – but in many ways it is the most significant consideration out of all that one may hold important. A job may pay very well, but one’s salary can never be the only deciding factor where work is concerned. If what one does for a living ends up conflicting with one’s innermost and key values, it’s only logical to conclude that one will never be a success at what one does.

How, therefore, can people be successful? In their book Profitable Passion at Work, father and son team Promod and Vijay Batra explain that people can achieve the pinnacle of success through taking care at the outset to ensure that one’s skills, ethics, values, and habits have a place at the table when one works. The right combination of these key elements at work will give even the newest employee a head start in the workplace and a real shot at becoming successful. What’s more, if he or she learns to love what he or she does for a living, then he or she will truly be on top of the world.

If anyone loves his or her job to such an extent that he or she has passion for what he or she does, and he or she works for the love of what he or she does, it’s certain that he or she will truly be a great achiever. In their book, the Batras provide tips, stories, strategies and steps towards getting to this point. They show that entrepreneurship and one’s life values can actually be linked – as a matter of fact when our actions are tied to our values, they increase our happiness and fulfillment. Technorati tags: book summaries, business books, business productivity, self improvement

Delegation is one of the most important time management principles available to managers. I can't think of a management practice that is praised more in theory but applied less in practice.When I ask managers about delegation, they praise its merits, but when it comes to their own use of delegation, the common response is "It is useful, BUT in my case…."

OK, so let's put your 'yes-buts' under the microscope…..

1. I fear losing control [insert your fear here].

Often when managers acknowledge their fear of relinquishing their control on the task, and recognize the benefits of delegation (such as being able to use their skills more appropriately), they are quick to practice delegation. As a manager, you have a job to do, and you need to prioritize the jobs across the resources that are available.2. The old adage that "I'm the only person who can do it right".

This could be a result of a lack of confidence in the people around you, or a perfectionist streak within you. To build your confidence in others, start by delegating routine or clearly defined tasks. Treat this as a training opportunity for you and others. If done right, by entrusting more work to others, your colleagues become more empowered in their work. If it is due to the perfectionist streak, learn to let or, or at least communicate your standards in a clear way.

3. If I give it to somebody else I will look bad, or I will become dispensable

This is an irrational fear. By delegating, you are freeing up your time to do more important things that match your skills and interest. If you delegate effectively everyone is a winner – you, the person you are delegating to, and your company.4. It takes me longer to train somebody than to do it myself.

This is a 'false efficiency' argument. By training your staff to do other types of work, then the next time they do this task they will be quicker. By training somebody to do the task, you have freed up your time for another job that only you can do!5. My staff will not like me if I give them extra work.

This comes down to your staff, current workloads and how you delegate. By entrusting your staff with extra responsibility, the right staff will be empowered by the extra responsibility you are entrusting in them.So when we put the "yes buts" under the microscope of truth, the reasons for not delegating are outweighed by their benefits.

Delegation saves you time and can develop the professionalism of your employees. By not delegating, you are not using the resources that are available to you in their most effective manner.

About the Author: Kell Shaun works with elite athletes, business professionals, managers and office workers with goal setting, stress and time management. If you would like a step-by-step guide to delegation, then visit Kell to get some successful delegation strategies.

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About the Author: Kerrie Halmi of Halmi Performance Consulting specializes in increasing women's success in business through speaking, coaching and facilitation. Kerrie has over fifteen years of experience in the Human Resources field with such clients as eBay, Wells Fargo and Kaiser. She received her MBA from the University of Michigan and is certified in coaching with Corporate Coach University International.See http://www.halmiperformance.com

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Managing change in an organization takes more than managing a process. Fail to understand that and you put the organization directly in harm's way.

If you are a manager you will have noticed that most productive work in the organization is done by around 20% of your people. Sixty percent of employees may show up for work but their hearts and minds are elsewhere. Another 18% actually perform in a way that is counter-productive.

So is it any wonder that most people resist change? They literally can't be bothered or actually feel threatened by any change in the organization. Most people identify elevated stress and anxiety during and after change implementation. Staff that suffer from pre-existing elevated stress levels can become destructive in an organization faced with significant culture or process change. If you don't deal with that when you try to begin a procedural or culture change program you will throw money down the toilet and risk your entire business.

No matter what business you have it is dependent on people. They are your greatest asset, and your greatest liability. You MUST understand what makes them tick and how they can be influenced into providing productive "engaged" input to earn their money each week.

The latest careful research has provided us with way to ensure that (and I hesitate to use this hackneyed term) everyone is "on the same page". We now understand why people behave and react the way they do to resist change. And we now know exactly what to do to ensure the entire organization is working together to implement your change program.

The methods need to be implemented by external specialist consultants who are seen to be independent, and seen to maintain the individual's confidentiality in discussions on their motivations, values and belief systems, and their view of management authority. By being independent, staff open up to a greater degree, especially when it is viewed the company or organization is doing something positive for them as individuals. A good stress management consultant defines and fixed sources of stress and ensures the values system of individuals and groups are aligned to that of the company or organization.

The consultant works with the on-staff management team to ensure a smooth operation. By reviewing the staff, primarily in groups for the 60% who are "non-engaged", and individually for the "actively-disengaged", the specialist consultants can adjust perceptions of management and the organization to provide motivation to comply with and support the change program.

This process dramatically reduces the risk of implementing a change program of any type with organizations and can actually enhance productivity and profits.

About the Author: Gary Johnston is a psychotherapist and consultant with extensive clinical and corporate experience in Stress and Change Management. He is a member of the Australian Association of Clinical Hypnotherapy and Psychotherapy and the Council of Clinical Hypnotherapists.He lectures in change and stress management and runs regular and custom designed courses.His team works within organizations to assist Change and Project Managers to limit program risks and enhance productivity.

For more information on Change Management click here.

For more information on Stress Management click here.

Just as the 3R's were fundamental back in school, a new set of 3R's have emerged in today's workplace that may turn out to be just as critical as "Reading, Writing and Arithmetic". They are; Respect Yourself; Respect Your Peers and Respect Your Team.

In an era when tapping into the hearts and heads of your people has never been so important, your credibility and effectiveness as a manager can be diminished or multiplied by your ability to apply them.

Respect Yourself Just as reading came before all else at school, respecting yourself comes before all other leadership traits and skills. The level of respect you have for yourself will largely determine the amount of respect you have for the world around you.

Accepting responsibility for your actions and results is probably the most obvious defining trait of the manager with higher self-respect. The manager that has a healthy level of self-respect understands the relationship between cause and effect. So they are always looking for ways to do things better (the cause) to get better outcomes (the effect). Whether it is accepting ownership for making a mistake and seeking to do it differently next time, or knowing when they are doing something well, so they seek to be consistent in their application of that particular skill or way of thinking.

Why is this considered a descriptor of healthy self-respect? Because they like themselves enough to:

· give themselves the benefit of the doubt

· give themselves the chance to improve

· give themselves the chance to shine

It goes without saying that managers who hold this way of thinking find it easier to want the same for their peers and team.

A self-respecting manager also has an open mind. They respect themselves enough to know that for them to be at their best they have to live each moment with an open mind, considering new ideas and being bold enough to apply those that might just work.

Respect Your Peers Besides leading a team of your own, most managers belong to a management team as well. For those working in a management team, this stage is important. Your peers can be a trusted source of feedback on your performance, and an inspiration when you are stuck for ideas.

Healthy respect for your peers is built on a healthy respect for yourself. Quite simply, having an open and honest relationship with your peers requires an honest and open relationship with yourself. If it is difficult to take the time to assess and understand your own performance (cause and effect) then it's not likely you will seek the confidence of your peers for the same.

Successful managers embrace the camaraderie that comes with being in a team of managers, and use that spirit to help them lift their own work team to new heights. In the spirit of General Colin Powell when he said that "perpetual optimism is a force multiplier", the same is true of sharing enthusiasm with your peers. Enthusiasm and openness is a multiplier of team spirit.

The flip side can be devastating though. When there is limited individual self-respect in the team, then the foundation for an open, supportive and successful team is non-existent. In these situations the varying stages of team deterioration can be seen through in-fighting, managers withdrawing, pairing of team members or even sinking to the despair of "looking out for myself".

As if this is devastating enough, the behavior of the team opens the door for the members of their own work teams to act in the same way. It isn't unusual to see work teams following the lead of their management teams. It is said that managers lead by example; even when they don't intend to. This is especially true under these circumstances. Respecting your peers is critical, and if personal differences make it hard to do this, then at the very least displaying tolerance and having an acceptance that more than one point of view is possible, is necessary. It is possible, and critical, for a management team to be united and find room for their differences.

Respect Your Teams Genuine respect for the people who work for you can only happen if you have taken care of the first two R's. It is a natural flow of events:

· Respect yourself by ensuring you have every opportunity to be confident and skilled at leading· This will make it easier to share and maximize the spirit that your management peers can provide· In turn your work team gets the best of you

It's easy to see that for a team to have a great manager, the manager must first see themselves as great…it's all starts out with having self-respect.

(c) David Morley 2008

About the Author: David Morley is an experienced facilitator of organizational change and leadership development strategies. David's approach is very eclectic, drawing on many schools of thought to provide meaningful organizational culture change solutions. David is currently engaged as the Director for Organizational Development Australia/New Zealand for a premier, blue-chip, organization in the leisure travel industry.

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There's some buzz I've been reading about in forums and on blogs about what's known as 'reader fatigue.' This is the condition that happens when you, as an individual, are confronted with sixteen hundred gazillion blogs, email newsletters, forums, and pdf downloads and you just get fed up with it.

I can relate.

Unfortunately, when you switch hats to being a business owner, suddenly you don't want to relate. You want people to read your emails, blogs and pdfs. Each unsubscribe, or ignored feed, or deleted pdf is like a stab to your heart, and a leak in your business.

Oy! Is it hopeless? I don't think so. But first, let me explain something about the last five hundred years or so.

A strange side road in human history.

For thousands of years humans have been social creatures, hanging out in tribes, bands, extended families, and small villages. Then, something funny happened.

In 1493 AD, Johannes Gutenberg invented the printing press. Suddenly it became easier to put out content, and you no longer had to rely on person-to-person communication.

Of course, it took a few hundred years for literacy rates and technology to make it truly powerful. In fact, with broadcast media like radio, television, and other moving pictures, large audiences could be mesmorized by another human being.

After a few decades, the thrill started to fade, even though the special effects were getting more intricate and loud.

Finally, finally, in the mid-1990's, technology caught up with human nature.

The internet began to break up the party. Individuals were no longer trapped by mass media. They took control of other avenues and began to expect what every human being has expected since the dawn of the brain: the ability to talk to one another.

Thus millions of blogs are launched. Companies and institutions can no longer hide behind the corporate moat and drawbridge.

That's all fine and good, sure, but what does that do about reader fatigue? And should you even bother jumping into the fray?

What is reader fatigue? Reader fatigue occurs when truth is absent. What I mean is that when someone combines the expectation of holding a large, mass audience and an intimate conversation at the same time, they trip over their own typing fingers.

By trying to do two things at once, they do neither one well, and totally lose their connection to truth and heart.

Reader fatigue is a bit of a myth. Amazon is still doing a lively business in book sales. People are still reading, perhaps more than ever. But, because we now have more than just three television stations available, people are deciding where to put their attention.

And people put their attention where truth and love are, where connection, support, compassion, and learning are. I'm guessing that's where you put your attention.

The lesson?

Don't let the threat of reader fatigue hide your truth.

Just because there are millions of conversations going on around the world at this very instant doesn't mean your friends don't want to hear what your truth and receive your love. Stand up, speak what you have, and listen to those who respond.

As business owner, you may never reach millions of people. But, by being who you are, and speaking the truth to those who need to hear from you, you'll be contributing meaningfully to your tribe and your clients. You'll be in the conversation.

So how do you step in? Let me give you a few pointers that have helped me.

Keys to Joining the Fray

• Write like you, um, talk.

Many of us were taught to write in elementary school according to archaic and academic styles of writing that leach the very juice of life from your writing.

Have fun. Say it how you would say it to friend. Forget 'professional.' Sure, spell-check and make sure you're making sense. But, like, y'know, have fun.

• Speak what you're afraid to speak.

It can be scary to speak the truth, especially if it's vulnerable or not popular. Recently I put up a blog post critiquing myself on a less-than-stellar public speaking performance. Because it was a really useful lesson to me, I posted it on my blog. Come and read it here.

Did I have thoughts like: "er… if I post this, will anyone ever invite me to do public speaking every again?" Sure I did. And yet, I'm here to help you, and my commitment to you as a friend and fellow traveller on the path of business is higher than my desire to protect myself.

So there you go. Do the same, and people will respond.

• Most people are shy, not angry and judgemental.

In my yoga class, the first few days we didn't talk to one another. The faces of my classmates were looking pretty stern. However, I've been on the planet long enough not to trust first impressions, and instead introduced myself and asked their name and wished them a good morning.

One by one each broke into a pleasant, friendly smile. Fifteen years ago I would've thought they didn't like me. Now I know they're just shy.

In many cases it's up to you to start the conversation, and to keep it up long enough for people to warm up, lose their shyness, and connect. If your first email newsletters or blog entries don't garner much response, keep at it. People will warm up- they're longing to connect to authenticity and love.

It's been said a million times in a million ways: show up, be yourself, and offer generously what you have to offer. You may not end up on Oprah with a readership that spans the globe, but you can build a thriving business with a steady clan of people who like to read, and respond, to what you offer.

About the Author: Mark Silver is the author of Unveiling the Heart of Your Business: How Money, Marketing and Sales can Deepen Your Heart, Heal the World, and Still Add to Your Bottom Line. He has helped hundreds of small business owners around the globe succeed in business without lousing their hearts. Get three free chapters of the book here.Technorati tags: book summaries, business books, business productivity, self improvement, Mark Silver

Many a book that supposedly teaches the art of leadership simply sticks to just reheating purely theoretical research and social surveys and adding a dab of advice here and there – there’s really not a whole lot about how to lead that can be learned from those sorts of documents.

The best teacher when it comes to leadership is experience. But in today’s world, which only seems to be moving faster and faster every day (and in which, let’s face it, bosses are getting more impatient for results and less patient with those who can’t deliver or improve fast enough), you really can’t blame would-be leaders and leaders alike for wanting to be better, faster, in ways that circumvent the old experiential process of learning.

It goes without saying that the most experienced leaders– those who’ve really ‘been it’ and ‘done it’ – have quite a bit of vital experience to share about the art of leadership. And it would be good for both newbies and veterans alike to learn from these battle-scarred colleagues of theirs.

Books like Never Steal a Paper Clip are thus invaluable even for those whose interest in learning to become a leader is merely casual. They showcase lessons gleaned from real-life experiences and impart these to their readers so they can get a taste of what ‘real’ leadership is like.

Never Steal a Paper Clip adopts a novel approach in teaching how to deal with common leadership problems. It distills time-tested insights into twelve maxims or lessons, each one beginning with "Never", to teach us what not to do in order to become great leaders. In many of them, specific examples of actual people whose experiences exemplify each maxim, those who learned the maxims ‘the hard way’, are mentioned to bring life to the point and provide specific examples.

Come to BizSum to sign up and read our summary of this excellent book!

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Here we go again with another big update for everyone… BestSummaries, our subsidiary that provides readers with summaries of nothing but the best self-help, motivational and inspirational books, now has its own blog as well.

Please do drop by. We'd love to see you there! Technorati tags: book summaries, business books, business productivity, self improvement, BestSummaries,

An economic downturn is a phase of the business cycle in which the economy as a whole is in decline.This phase basically marks the end of the period of growth in the business cycle. Economic downturns are characterized by decreased levels of consumer purchases (especially of durable goods) and, subsequently, reduced levels of production by businesses.

While economic downturns are admittedly difficult, and are formidable obstacles to small businesses that are trying to survive and grow, an economic downturn can open up opportunities. A well-managed company can realize the opportunity to gain market share by taking customers away from their competitors. Resourceful entrepreneurs capture the available opportunities, from an economic downturn, by developing alternate methods of doing business that were never implemented during a prior growth period.

The challenge of successfully navigating your business through an economic downturn lies in the realignment of your business with current economic realities. Specifically, you, as the business owner, need to renew a focus on your core clients/customers, reduce your operating expenses, conserve cash, and manage more proactively, rather than reactively, is paramount.

Here are best practices that will help you to successfully navigate your business through an economic downturn:

Goals:

The primary goal of any business owner is to survive the current economic downturn and to develop a leaner, more cost-effective and more efficient operation. The secondary goal is to grow the business even during this current economic downturn.

Objectives:

• Conserve cash.

• Protect assets.

• Reduce costs.

• Improve efficiencies.

• Grow customer base.

Required Action:

• Do not panic… History shows that economic downturns do not last forever. Remain calm and act in a rational manner as you refocus your attention on resizing your company to the current economic conditions.

• Focus on what YOU can control… Don’t let the media's rhetoric concerning recessions and economic slowdown deter you from achieving business success. It´s a trap! Why? Because the condition of the economy is beyond your control. Surviving economic downturns requires a focus on what you can control, i.e. your relevant business activities.

• Communicate, communicate, and communicate! Beware of the pitfall of trying to do too much on your own. It is a difficult task indeed to survive and to grow your business solely with your own efforts. Solicit ideas and seek the help of other people (your employees, suppliers, lenders, customers, and advisors). Communicate honestly and consistently. Effective two-way communication is the key.

• Negotiate, negotiate, and negotiate! The value of a strong negotiation skill set cannot be overstated. Negotiating better deals and contracts is an absolute must for realigning and resizing your company to the current economic conditions. The key to success is not only knowing how to develop a win-win approach in negotiations with all parties, but also keeping in mind the fact that you want a favorable outcome for yourself too.

Recommended Best Practice Activities:

The Nuts and Bolts… The following list of recommended best practice activities is critical for your business' survival and for its growth during an economic downturn. The actual financial health of your particular business, at the outset of the economic downturn, will dictate the priority and urgency of the implementation of the following best practice activities.

1. Diligently monitor your cash flow: Forecast your cash flow monthly to ensure that expenses and planned expenditures are in line with accounts receivable. Include cash flow statements into your monthly financial reporting. Project cash requirements three-to- six months in advance. The key is to know how to monitor, protect, control, and put cash to work.

2. Carefully convert your inventories: Convert excess, obsolete, and slow-moving inventory items into cash. Consider returning excess and slow-moving items back to the suppliers. Close-out or inventory reduction sales work well to resize your inventory. Also, consider narrowing your product offerings. Well-timed order placement helps to reduce excess inventory levels and occasional material shortages. The key is to reduce the amount of your inventory without losing sales.

3. Timely collection of your accounts receivable: This asset should be converted to cash as quickly as possible. Offer prompt payment discounts to encourage timely payments. Make changes in the terms of sale for slow paying customers (i.e. changing net 30 day terms to COD). Invoicing is an important part of your cash flow management. The first rule of invoicing is to do it as soon as possible after products are shipped and/or after services are delivered. Place an emphasis on reducing billing errors. Most customers delay payments because an invoice had errors, and therefore, will not pay until they receive a corrected copy. Email or fax your invoices to save on mailing time. Post the payments that you have received and make deposits more frequently. The key is to develop an efficient collection system that generates timely payments and one that gives you advance warning of problems.

4. Re-focus your attention on your existing clients/customers: Make customer satisfaction your priority. A regular review of your customers' buying history and frequency of purchases can reveal some interesting facts about your customers' buying habits. Consider signing long-term contracts with your core clients/customers which will add to your security. Offer a discount for upfront cash payments. The key is to do what it takes to keep your current customers loyal.

5. Re-negotiate with your suppliers, lenders, and landlord:

i) Suppliers: Always keep your negotiations on the level of need, saying that your company has reviewed its cost structure and has determined that it needs to lower supplier costs. . Tell the supplier that you value the relationship you have developed, but that you need to receive a cost reduction immediately. Ask your supplier for a lower material price, a longer payment cycle, and the elimination of finance charges. Also, see if you can buy material from them on a consignment basis. In return for their price concessions, be willing to agree to a long-term contract. Explore the idea of bartering as a form of payment.

ii) Lenders: Everything in business finance is negotiable and your relationship with a bank is no exception. The first step to successful renegotiations is to convince your lenders that you can ultimately pay off the renegotiated loan. You must point out to your lenders why it would be in their best interest to agree to a new arrangement. Showing them your business plan and your action plan that includes your cost-savings initiatives, along with "the how" and "the when" of the implementation of your plan is the best way to achieve this goal. Explain to them that you will need their cooperation to insure that you can survive, as well as, grow your business during the economic downturn. Negotiated items include: the rate of interest, the required security to cover the loan, and the beginning date for repayment. A beginning date for repayment could be immediate, within several months or as long as a year. The key is to realize that your lender will work with you, but that frequent and continual communications with them is critical.

iii) Landlord: Meet with your landlord. Explain your need to have them extend the term of your lease at a reduced cost. Make sure you have a clause in the lease agreement that entitles you to have the right to sublet any or all of the leased space.

1. Re-evaluate your staffing requirements: This is a very critical area. Salaries/wages are a major expense of doing business. Therefore, any reduction in the hours worked through work schedule changes, short-term layoffs or permanent layoffs has an immediate cost saving benefit. Most companies ramped up hiring new employees in the good times, only to find that they are currently overstaffed due to slow sales during the economic downturn. In terms of down-sizing your staff, be very careful not to reduce your staff to a level that forces you to skimp on customer service and quality. Consider the use of part-timers or the current trend of outsourcing certain functions to independent contractors.

2. Shop for better insurances rates: Get quotations from other insurance agents for comparable coverage to determine whether or not your present insurance carrier is competitive. Also, consider revising your coverage to reduce premium costs. The key is to have the right balance-to be adequately insured, but not under or over insured.

3. Re-evaluate your advertising: Contrary to the other cost-cutting initiatives, evaluate the possibility of increasing your advertising expenditures. This tactic realizes the advantage of the reduced "noise" and congestion (fewer advertisers) in the marketplace. The downturn period a great opportunity to increase brand awareness and create additional demand for your product/service offerings.

4. Seek the help of outside advisors: The use of an advisory board comprised of your CPA, attorney, and business consultant offers you objectivity and provides you with professional advice and guidance. Their collective experience in working with similar situations in past economic downturns is invaluable.

5. Review your other expenses: Target an across-the-board cost-cutting initiative of 10-15%. Attempt to eliminate unnecessary expenses. Tightening your belt in order to weather the downturn makes practical, financial sense.

Proactively managing your business through an economic downturn is an enormous challenge and is critical for your survival. However, through well-planned initiatives, an economic downturn can create tremendous opportunity for your company to gain greater market share. In order to take advantage of this growth opportunity, you must act quickly to implement the above best business practices to continue realigning and resizing your company to the current economic conditions.

Copyright © 2008 Terry H. Hill

About the Author: Terry H. Hill is the founder and managing partner of Legacy Associates, Inc, a business consulting and advisory services firm. A veteran chief executive, Terry works directly with business owners of privately held companies on the issues and challenges that they face in each stage of their business life cycle. To find out how he can help you take your business to the next level, visit his site at http://www.legacyai.com

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