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Hodgson had the opportunity to serve as a sponsor for the Greater Washington Board of Trade ' s Entrepreneurship Awards Luncheon last week. In prior years, the event was held in the evening, and as one of the speakers said, if there ever was a year to have the event as a dinner where drinks could be served as the talk turned to the economy, this was the year. But, even with our iced teas, attendees did find positive advice to share on thriving as an entrepreneur, especially in troubled times.
In addition to celebrating awardees for Entrepreneur of the Year, Most Engaged Small Business and Guiding Small Business Growth, the luncheon featured a panel moderated by Sharon McLoone, of washingtonpost.com. When McLoone asked panelists " What advice do you have for entrepreneurs operating in today ' s economy,". I found the responses to have great applicability, whether your company is a start up or well established.
Mark Ein, of Venturehouse Group, LLC, told attendees to focus on the four " C ' s ". First, cash—when lending is tight, if you don ' t have cash, you can ' t do anything. If you do have cash, you ' ll be able to take advantage of the opportunities and bargains that a weak economy brings. Second, customers are as valuable as cash. Treat them right, and let them know that you appreciate their loyalty and their business. The acquisition cost for new customers is even higher in a tight market. Third, communication-if things are difficult, and your company needs to tighten its belt, make sure you are communicating with employees, vendors, partners and clients. Most people understand economic downturns, but they need to know clearly what is going on in order for them to trust you. Mark ' s final " C " was culture. In a tough market, a strong corporate culture will help you retain employees and keep them focused on the organization ' s mission.
Scalability was the advice given by John Kane of the The Kane Company. He spoke of losing $9 million when his company got locked into long term agreements on warehouses it no longer needed when the telecommunications market collapsed. As your company is growing, make sure you are also structuring in such a way that scaling back is a viable option if markets shrink. Insurance broker Denise Lloyd, of D.H. Lloyd Associates spoke of the importance of alternatives. Lloyd related how her company was responsible for writing insurance on numerous properties surrounding the World Trade Center. When their coverage expired in October 2001, her primary carrier would no longer underwrite the properties. Scrambling to find a company that would underwrite taught her the importance of always having options. Unforeseen events can quickly impact your company and that of the vendors and suppliers you rely on. Even in good times, be looking for alternatives to ensure your business can thrive.
Hodgson is proud to be an active part of the Greater Washington Board of Trade (link to site). If you ' d like more information on how to get involved, let me know. (link to Matt ' s email).
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