Orange County Register

Norm Bour, a volunteer business counselor with SCORE will provide advice for surviving the current economic woes at a SCORE Women’s Business Breakfast 8 a.m. March 13 at the Center Club in Costa Mesa.

Norm Bour

Cost is $30 in advance; $35 at the door. Click here for information and reservations.

Bour has developed programs for accelerating paying off your mortgage and paying off your business debts. Click here for more information.

Here are some tips from his presentation, “Crisis? What Crisis? Steps to Help Your Business Survive.”

How do you know if your business can survive this economic meltdown? Let’s face it, there has never been a time in our lives when things have been so unpredictable. No one quite knows what the new rules will look like.

The Orange County chapter of SCORE has over 100 members with a combined many hundreds of years of experience. These suggestions come from these members.

1. LOOK AT WARNING SIGNS: Is your business unable to pay its month bills? Is inventory accumulating?

It’s time to Deal with reality. You need tactical survival strategies. What made you successful initially? Is it still applicable? Develop a comprehensive cash flow analysis.

2. REDUCE OVERHEAD; STOP THE BLEEDING: Review company expenses starting with the largest and work down. Renegotiate the lease if the landlord is willing. Monitor all employee expenses. Ask employees for suggestions for improvement.

Evaluate staffing. Consider temporary, flexible, reduced hours for employees. Lay off when necessary. Keep your employees informed. Review all salaries, including owners, to see if they can be reduced.

Evaluate payables. Pay on time, but not early. Negotiate everything, prices, terms and delivery schedules. If you have the money negotiate early payment discounts. Have appropriate processes to avoid theft and fraud.

3. INCREASE SALES/INCOME: Improve lead generation process to find new potential customers. Find ways to get more repeat business from old customers. Encourage customers to add on products, services or related items.

Create special promos, such as buy two get one free. Increase prices where possible. Watch successful competitors prices to stay on par.

Have a solid collection strategy and follow it. Let the customer know you care about payment. Monitor past due accounts. Minimize accounts receivables by getting payment in advance or COD.

4. RE-EVALUATE YOUR BUSINESS MODEL: Pause. Think. Does what you do still work? Are others in your business in trouble too?

If necessary, restructure debt. Keep your bankers informed. Get your accounting up to date and clean.

Test your credit line, even if you don’t need it. See if your bank will still honor the amount.

If you have a tip, strategy or resource to help small businesses, click here to send it to me. If I use it, I’ll give you credit and link to your web site.

More economy stories….

• National web site discovers O.C. ‘tiger teams’
• O.C. bankruptcies soar 94% in 2008
• Poll: How much impact from recession?
• Which companies are least likely to lay you off?
• O.C. new business-name filings in ‘08 lowest in 5 years
• Census still seeking 800 O.C. workers this year
• Obama price break offered by O.C. business group
• Bad economy creates upswing in home improvements

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