NEWS RELEASE
FOR IMMEDIATE RELEASE
April 2, 2009

KOSBE After Hours Small Business Forum Confronts Economic Challenge with Eye Towards Survival

KINGSPORT, TN—At the invitation of the Kingsport Area Chamber of Commerce Office of Small Business Development & Entrepreneurship (KOSBE), representatives from 10 local small businesses gathered after 5 PM on Thursday, at Madagascar Coffee Company, at 1 Sheridan Sq, #100, Kingsport, TN, to share strategies for surviving the current economic downturn.

KOSBE volunteer Blair Jones of Nash & Powers Insurance Co, served as the moderator for a diverse panel of small business experts, who have proven track records in small business ownership and management.  Dave Clark, developer of the Meadowview medical business office complex, Ken Frohlich, co-CEO of 2002 Inc. 500 company GTS Refreshment Services, and Terri Willis, second-generation owner of 35-year-old retail shop Carriage House gave the following advice to small businesses:

• To assure future sales receipts, continue to invest in the right marketing tactics --reach the right customers with the right approach (i.e., local newspaper, cable television, Internet, word of mouth, direct mail, tradeshows, networking, telephone, in-person consultative selling, and email).

• Operate lean and live within your means --in business and at home. 

• Adjust the type, quantity, and frequency of your inventory.

• Reduce holding, storage, and transportation costs.

• Optimize the use of technology your company already has in place --finally figure out how to use your PDA, QuickBooks, cell phone applications, and Intranet.

• Be realistic, but be positive --do not bury your head in the sand and be brutal with yourself behind closed doors.

• Understand the trends that directly and indirectly impact your business (i.e., decelerating auto industry and rising healthcare needs).

• Make customer decisions based on their calculated Customer Lifetime Value --in the big scheme of things a $4.00 refund could be worth $30,000 to your business' bottom line over a customer's entire lifetime.

• Do not borrow money to sustain current operations, such as to pay for salaries, bonuses, or benefits.

• Retreat to your core product or service or explore new opportunities depending on the current market.

• Keep the lines of communication open with your lenders and suppliers --develop these relationships and do not hide when you get into trouble.

• Select appropriate key indicators to watch and respond to imminent danger --be more proactive and less reactive.

• Employ the 'sniff test' --if it stinks, pass on the proposition and stay focused on your ultimate goal.

• Write down your plan, implement it, and stick to it --keep doing what is working and stop doing what does not work.

• Upgrade your employee pool while the overall level of unemployment is high --great talent is affordable and available.

• If you must lay off employees to get back on solid financial ground, decide who to lay off systematically and consistently rather than cherry-picking which increases your risk of litigation, effectively communicate this information, and get through the process quickly.

• Turn off the lights and turn down the air when there is no one in sight --saving energy will save you money over time.

“I believe that some small businesses will wake up tomorrow and realize that they have made a big mistake not attending this free event,� said Aundrea Wilcox, KOSBE Executive Director.  "The information that was shared could mean the difference between success and failure for many businesses during this unprecedented and tense economic climate.  I encourage those business owners who were not able to attend this event, to contact the business members that were present and ask questions.  I'm betting the businesses that attended the forum will be the most resilient in the coming two years."

These recommendations do not necessarily represent the recommendations of KOSBE, or all of the panelists individually.  For a complete list of attendees and tips given for small business survival, contact Aundrea Wilcox, KOSBE Executive Director, or visit www.kosbe.org. 

About KOSBE

KOSBE is a nonprofit economic development organization that represents a partnership between the City of Kingsport and the Kingsport Area Chamber of Commerce, and a proud Strategic Resource Partner of the U.S. Small Business Administration.

Press Contact:
Aundrea Wilcox, Executive Director
Kingsport Area Chamber of Commerce
Office of Small Business Development
& Entrepreneurship (KOSBE)
151 East Main St
Kingsport, TN 37662
Phone (423) 392-8801
Email awilcox@kosbe.org
www.kosbe.org