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The entrepreneur's toolbox
As the economy begins its slow recovery, business professionals must adapt to the “new normal.” Here are the tools to do just that.
By Jerry HicksPublished: January 01, 2010
When Pat Brenden founded his Huntington Beach-based Home Run Media in 1992, business took off, with a high-volume market for his duplication diskettes for software companies. But just before the recent economic downturn became serious, Brenden could see a disturbing pattern: Customers were finding CD options for their software, reducing the need for what he offered. So he expanded into the architectural sign market and did well, with a 20 percent increase in business while other sign companies were losing money.
Scroll down for links to the 10 tools
every entrepreneur should know.
With the economy predicted to go on an upswing this year, Brenden has even greater hopes for his sign business. But that doesn’t mean he isn’t planning changes. Brenden very much buys into what economic forecasters call the “new normal” for business. He plans to be aggressive – but with caution on some fronts.
“There is a new conservative standard that will be the norm for entrepreneurs like myself,” Brenden says. “We can’t do business as we have in the past. You’re going to see a lot less risk-taking than before.”
The “new normal” is the result of a lower expectation that the money will always be there for creative development, says Anil Puri, the business school dean at Cal State Fullerton and a leading Southern California economic forecaster.
“Entrepreneurs will have to find new, creative ways to finance projects,” Puri says. “There is a new change in the landscape. Old-fashioned ways just won’t work.”
Creativity may require generating more capital within your own company – and that could mean cutting back either on employees or assets, says Puri. The “new normal” also means taking a fresh look at what investments companies make.
Victoria Collins, a senior managing director of Irvine-based First Financial Advisors (formerly the Keller Group), is blunt with her advice for 2010: “soap, gas and hamburger.”
That means, in the “new normal,” go to consumer needs. Collins, whose company manages $1.2 billion in assets, advises her clients to invest in “repeatable, sustainable businesses.”
“You’re going to see a lot less high-tech investing during this economic recovery,” she says. “Stick to basics.”
Collins and other economic experts insist that companies will need a new mindset, not a return to business as it was before. For example, Puri predicts that manufacturing will be do
wn by 10 percent from what it was before the downturn, and that it will likely stay there.
“It’s not going to be the same world we had before this recession,” Puri says. “Business people had better get used to it.”
What other kinds of adjustments will have to be made? The following are 10 toolbox tips for success based on interviews with Orange County business leaders and financial advisors.
THE ENTREPRENEUR'S TOOLBOX
1. Learn to live with tighter credit – permanently.
2. Be aggressive.
3. Forget annual reviews.
4. Horde your cash.
5. Develop "what if?" business strategies.
6. Re-think personnel,
both at the hiring and the management strategies.
7. Don't fear investing – but change your investment strategy.
8. Insist on dramatically improved customer service.
9. Narrow the economic picture to your field.
10. Think globally, not locally.
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Scroll down for links to the 10 tools every entrepreneur should know. With the economy predicted to go on an upswing this year, Brenden has even greater hopes for his sign business. But that doesn’t mean he isn’t planning changes. Brenden very much buys into what economic forecasters call the “new normal” for business. He plans to be aggressive – but with caution on some fronts. “There is a new conservative standard that will be the norm for entrepreneurs like myself,” Brenden says. “We can’t do business as we have in the past. You’re going to see a lot less risk-taking than before.” The “new normal” is the result of a lower expectation that the money will always be there for creative development, says Anil Puri, the business school dean at Cal State Fullerton and a leading Southern California economic forecaster. “Entrepreneurs will have to find new, creative ways to finance projects,” Puri says. “There is a new change in the landscape. Old-fashioned ways just won’t work.” Creativity may require generating more capital within your own company – and that could mean cutting back either on employees or assets, says Puri. The “new normal” also means taking a fresh look at what investments companies make. Victoria Collins, a senior managing director of Irvine-based First Financial Advisors (formerly the Keller Group), is blunt with her advice for 2010: “soap, gas and hamburger.” That means, in the “new normal,” go to consumer needs. Collins, whose company manages $1.2 billion in assets, advises her clients to invest in “repeatable, sustainable businesses.” “You’re going to see a lot less high-tech investing during this economic recovery,” she says. “Stick to basics.” Collins and other economic experts insist that companies will need a new mindset, not a return to business as it was before. For example, Puri predicts that manufacturing will be do wn by 10 percent from what it was before the downturn, and that it will likely stay there. “It’s not going to be the same world we had before this recession,” Puri says. “Business people had better get used to it.” What other kinds of adjustments will have to be made? The following are 10 toolbox tips for success based on interviews with Orange County business leaders and financial advisors. THE ENTREPRENEUR'S TOOLBOX
1. Learn to live with tighter credit – permanently. 2. Be aggressive. 3. Forget annual reviews. 4. Horde your cash. 5. Develop "what if?" business strategies. 6. Re-think personnel, both at the hiring and the management strategies. 7. Don't fear investing – but change your investment strategy. 8. Insist on dramatically improved customer service. 9. Narrow the economic picture to your field. 10. Think globally, not locally. |
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