We had thought about using “Independence County Businesses AND the “R” Word” as the title of this article, but was reminded by some of my economist friends that the U.S. Economy is not OFFICIALLY in a recession. The agency responsible for making that call has yet to decide. But whether the economy is in an official recession yet or not…. many business owners around the region are struggling with slowing consumer spending combined with higher costs, much due to transportation related costs brought on by higher fuel prices, and that is causing a big squeeze on their bottom line. A number of business owners we have spoken to in the past three months have complained that fewer customers are coming in and those that do are spending less. However, these same owners are seeing their cost of doing business increase and it is creating real problems with liquidity.
The bad news is… recessions happen. The good news is… they are followed by renewed periods of economic growth, usually at even higher levels than before the recession. IF the economy does go into a recession it will recover. Since 1980 there have only been seven recessionary periods and they have always been followed by stronger periods of growth. Of course if your business is the one that fails during that period it will not seem like a minor recession to you. If the economy does slip into an “official” recession will it follow the same trends as the recent past? Who knows? Certain factors do make the current conditions a little more unique; the fact the country is involved in a protracted war that must be funded and the ever increasing price of gasoline which will not be coming down could mean a different economic landscape once the recession does end.
Individually,
First: Get your head out of the sand; quit wringing your hands and start planning. Regardless of economic conditions, successful business owners should take some time each week to scan their environment, looking for clues from outside sources as to which way the wind is likely to blow in coming months. Subscribe to and read information in your association newsletters and certainly read the business section of your local newspaper. You can learn a lot about what may be coming just by looking for:
· Monthly reports by big box retailers like Wal-mart and Target. Consumer spending makes up 70% of this nation’s GDP. If they start posting declines may be a good indicator for your business.
· Watch the Fed (Federal Reserve) announcements about changes in interest rates. The Fed does not drop interest rates because things are going well. They drop interest rates because they see signs the economy is deteriorating and are trying to prop it up by making money cheaper to buy.
· Watch state and local employment reports; more large companies laying off workers the less money is in your local area for purchases by those folks who lost their jobs.
· Finally, pay attention to reports on inflationary moves. When the prices for necessities such as food, clothing, and gasoline increase at a faster rate than wages, consumers feel they are less well off and will curtail spending accordingly.
None of these simple steps takes a degree in Economics but it can help a business owner “read the tea leaves” and start to make plans to adjust in response.
Second: It is time to take your marketing plan off the shelf. The past economic booms have made many businesses lazy. When consumer spending grew they were able to pick the “low hanging fruit”. But when economic times get tougher, successful businesses know that survival means developing a marketing game plan. All businesses are in the relationship business and smart entrepreneurs know this. Marketing is not “Madison Avenue”; it is not just advertising or sales gimmicks. Marketing is about developing and maintaining real relationships with your customers. A recession is not the time for a “take it or leave it” approach to business. There are hundreds of simple low cost, even no cost marketing techniques that any business can take advantage of that will sustain and even grow a business in tough times, but they have to take the time to learn.
Third: It is time to take a hard look at the financial operations of the business, especially those that have a direct impact on cash flow and liquidity. A knee jerk reaction of too many businesses in recessions is to take out the carving knife and start wholesale slashing of costs without regard to how that expense supports the business. Too many business owners immediately cut advertising or wholesale lay offs of employees without regard to long term implications. The key is careful review of all expenses and then careful decisions that cuts the FAT, not the muscle of the business. Other simple financial management tools include developing realistic inventory control plans, review of credit decisions to customers and developing good collection policies to ensure faster in flow of cash.
In the mean time what can individual businesses do to survive, maybe even thrive during these times? The Batesville Area Chamber of Commerce and the ASU Small Business Development Center have teamed up to offer a special workshop for area businesses called Growing Your Businesses During Difficult Economic Times, (Recession Proofing Your Business). This workshop will be offered from 6-9:00 p.m. on Tuesday, October 14th and again from 1-4:00 p.m. on Wednesday October 15th at the University of Arkansas Community College in Batesville. Call the chamber at (870) 793-2378 for more details. The workshop is free to all area businesses thanks to contributions from The Citizens Bank, First Community Bank, First National Banking Company (FNBC), Liberty Bank of
Economic downturns happen…it is a business fact of life, but proper prior planning can often make the difference between success or failure. The Batesville Area Chamber of Commerce wants you to be a survivor and we can help.
See You at the Pole; An Overview 
A small group of teenagers in Burleson, Texas, came together for a DiscipleNow weekend in early 1990. They came seeking God. Little did they know how powerfully God was about to move. On Saturday night God penetrated their hearts like never before. The students were broken before God and burdened for their friends. Compelled to pray, they drove to three different schools that night. Not knowing exactly what to do, they went to the school flagpoles and prayed for their friends, schools, and leaders. Those students had no idea how God would use their obedience. God used what He did among those teenagers and others who were holding similar prayer meetings at their schools to birth a vision in the hearts of youth leaders across Texas. The vision was that students throughout Texas would follow these examples and meet at their school flagpoles to pray simultaneously. The challenge was named See You at the Pole at an early brainstorming session. The vision was shared with 20,000 students in June 1990 at Reunion Arena in Dallas, Texas. Only God had envisioned how many students would step up to the challenge. At 7:00 a.m. on September 12, 1990, more than 45,000 teenagers met at school flagpoles in four different states to pray before the start of school. A few months later, a group of youth ministers from all over the country gathered together for a national conference in Colorado. Many of them reported that their students had heard about the prayer movement in Texas and were equally burdened for their schools. No other events had been planned, but it was clear that students across the country would be creating their own national day of student prayer. There was no stopping them. On September 11, 1991, at 7:00 a.m., one million students gathered at school flagpoles all over the country. From Boston, Massachusetts, to Los Angeles, California, students came together to pray. Some sang, some read Scripture, but most importantly, they prayed. Like those first students, they prayed for their schools, for their friends, for their leaders, and for their country. As in all great movements of prayer, See You at the Pole™ did not begin in the hearts of people. It began in the heart of God. God used the obedience of a small group of teenagers to ignite what has become an international movement of prayer among young people. Since 1991, See You at the Pole™ has grown to God-sized proportions. Within only a couple of years, students were praying in several countries around the world. Now, more than 3 million students from all 50 states participate in SYATP. Students in more than 20 countries take part. In places like Canada, Guam, Korea, Japan, Turkey, and the Ivory Coast, students are responding to God and taking seriously the challenge to pray. (The complete history of SYATP is documented in a segment available on the promotional DVD. To order please call 817.HIS.PLAN (447.7526).) God is continuing to call His people to repentance and prayer. Countless inspiring testimonies of how He has used See You at the Pole™ to bring students to Christ and to change lives affirm God’s power to answer those who cry out to Him in humble dependence. Bible clubs, weekly prayer meetings, and other ministries have begun on campuses where students participated in SYATP. (Taken from the SYATP website)
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