Preparing for New Growth Opportunities in a 2010 Economy

By: Mike Semanco, President, Hennessey Capital

When we do see the light at the end of the proverbial tunnel, companies need to be prepared to handle the pent up demand which builds in challenging times.  Business owners have spent the last 18 months streamlining operations and cutting where possible.  Now is the time to begin planning for new opportunities so that when they arrive at your doorstep, you can welcome them in versus turning them away.  There are two critical needs which small business leaders are concerned about- access to capital and talent attraction. 

All signs indicate that credit markets will remain tight throughout 2010 so entrepreneurs need to be prepared to consider multiple sources that can work in tandem to meet their funding needs.  This means your working capital lender will probably not handle your real estate loan or equipment loan.  It may also mean that the cost of capital may be higher than in the past but with new opportunities in hand; the cost of saying “no” will be greater than the new cost of capital.  In regards to talent, the key will be finding individuals with the right skill set.  Candidates will need to be multi-dimensional and be required to take on new projects outside their comfort zone.  Companies will want to maximize their hires and accept the fact that overstaffed businesses are a thing of the past.  Consult with your professional advisors to get the most out of new opportunities.  Survivors will thrive if they are prepared.