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Coping
With Changing Environments
Maximization of Your Results, Staying Within Your
Abilities and Not Stubbing Your Toes.
In an innovative approach, Chapman Spira and Carson has
established an offsite evaluation and systems department
for small to mid-sized companies. The purpose of this
division is to provide management with all of the
necessary tools to facilitate decision making in our
ever-evolving business scene. The day of the local
cabinetmaker who only had to concern himself with where
to buy the best wood to build his product are over. We
are overwhelmed with innovation, which allows today’s
business the ability of expanding beyond anything before
dreamed possible or in the alternative falling prey to
competitors that are not even visible.
Technological innovations such as the Internet have
changed the way products are marketed. No longer is your
only competition the guy next door. Today he can be
across the continent and tomorrow he may reside half a
globe away.
Banking has also altered its face as the era of dropping
by the local office and refinancing the business over
lunch has gone the way of the dinosaur. The financial
business has become institutionalized and loans are made
more by being a candidate that the computer recognizes
as a good risk than good a good dinning companion.
Dealing with the banking community now requires mew
expertise totally contrary to the requirements of the
past.
American industry has learned well from the Japanese,
and we have taken their “just in time” inventory
methodology and lowered the average amount of time that
the product is kept on the shelf from a two month supply
to that of one month. This has caused suppliers to look
for less expensive and more exact ways of shipping
product, more centralized manufacturing facilities and
alternative raw material suppliers.
The minimum wage has been raised recently and payroll
expenses continue to climb. Unemployment has reached
almost at historic lows while immigration has been cut
off. Green cards are no longer issued by the Passport
and Emigration Service upon request and the union
movement has regained strength. Insurance costs have
risen unmercifully and social security rates continue to
climb. It would take a Ph.D. just to follow what is
happening on a daily basis. It is not conceivable that a
smaller business can do this and grow their business,
the number of hours in a day has remained at a constant
twenty-four.
The rules and perceptions regarding corporate
reorganizations have changed dramatically over the last
several years and the stigma of using the regulations
covering these actions has literally evaporated. Many of
the practices that historically were considered immoral
are in today’s climate considered “good business”. All
business has good and bad times. There are alternatives
to cover the rough spots that were not viable just short
years ago.
During the Republican years, many of the government
agencies that were charged with aiding businesses had
much of their funding diminished severely. The Clinton
Administration has taken a 180-degree turn and
resurrected many of the old programs while
simultaneously aiding new ones. There are programs
geared to assistant all businesses, not just minorities.
It is only a matter of knowing what they are and how to
go about utilizing them. The states have also installed
economic development programs that can be of great value
to the entrepreneur if you just know where to find them.
Roll-ups have become the new Wall Street fad. A roll-up
is simply the combination of a large number of small
businesses within the same general business category for
the purpose saving money through greater purchasing
power, sharing general and administrative expense,
keeping up with government regulations, analyzing
current business trends and creating solid marketing
plans to cope with the ever changing marketplace and
ultimately to go public at a combined price earning
ratio far higher than the local business would ever have
received by itself. Car agencies, doctor’s practices,
franchised food takeout stores, hardware stores and
funeral parlors are just a few of the recent “roll ups”
that have “worked” for owners and investors alike.
The only way for many to survive would be the
acquisition on other competitors so that you can receive
the benefits of quantity discounts in materials and
shipping. Centralized manufacturing and low tax and
available labor areas are also important consideration.
The quest for financing, location and acquisition is
time consuming and an art form that takes a lifetime of
experience.
These are some of the areas that our management experts
cover. Let our people come in and make recommendations
on everything from the ground up. We will also
individualized management assistance on an ongoing basis
for as long as it may be required under a number of
unique plans.
Call us at your convenience.
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