Negotiating Difficult Times

Tips to help propel your business

While the Obama Administration and Congress take steps to try to stimulate the economy, women business owners offer a variety of tips and techniques for entrepreneurs navigating these difficult times:

NEGOTIATE GOOD DEALS: Take advantage of what is current a buyer’s market to strike advantageous deals with landlords, suppliers, creditors and others. Many NAWBO members interviewed agreed that just about everything is up for negotiation these days. Wendy Buller said her company, Benchmark Environmental Engineering, has negotiated price reductions with vendors in exchange for volume guarantees on work. Everyone wins, because the vendors get their cash upfront and the company saves money.

More women business owner also are negotiating better phone and cell packages. Some said they saved significantly by switching to Voice over Internet Protocol services (such as Skype), an Internet-based telephone service.

Janis Martinez, NAWBO Atlanta’s president and owner of Ashford Management Group, said it’s crucial to ask vendors what they can do for you and your business and if it’s not the right price shop around. “People are cutting deals all over the place.”

BARTER: This time-tested mode of exchanging goods has a place in the modern market especially when cash flow becomes a problem. From Santa Barbara to Miami, chapter presidents said barter is catching on.

Cathy Feldman, publisher of Blue Point Books and president of NAWBO Santa Barbara, Calif.’s chapter, cited the example of a woman business owner exchanging executive training for help setting up a Web site. “It’s a ‘win-win’ with no cash either way,” she said.

MANAGE CASH FLOW: With tough credit lines, it’s crucial to watch cash flow closely and if possible do realistic projections as much as a year out.

Resist using credit cards that sap cash with double-digit interest rates. If you have credit card debt, try to negotiate a better interest rate with the credit card company. Ms. Buller said rates as low as 5 percent have been negotiated, and that while it shouldn’t hurt your credit rating the write-down likely will be reported to a credit bureau.

FINDING CAPITAL: Yes, there still is capital if you look in the right places. Gail Froelicher, president of NAWBO Columbus, Ohio, and owner of Kinetic Insights, LLC, an executive and business coaching firm, said there still are some well-capitalized banks in the country willing to make small business loans to companies who can demonstrate sound management principles. Check out Web sites for a list of possible banks, including at www.Bankrate.com Many communities also have micro-lenders for women business owners, while others have “technology incubators,” with grants or other venture funds available.

THINK GLOBALLY: With a smaller world connected by technology, more small businesses are expanding into international markets.

Nancy Brownrigg, a board member with NAWBO Greater Detroit, and owner of Brownrigg Companies, Ltd., said her insurance company began growing again when it began writing products from “kidnapping and ransom” to “government usurpation” policies in overseas markets. Now there’s a “reverse flow,” too, as foreign companies ask her firm to write U.S. policies.

Brownrigg said the decision was made to go international after she attended a Chrysler-offered seminar where executives told a wide-ranging audience that they should either “go global or close-up.”

CONSIDER GOVERNMENT CONTRACTS: Working for the government can be a mixed bag, largely because of the maze of red tape that can result in delays and frustrations. Ms. Buller said government work can be worthwhile, but suggested finding a mentor who’s already successfully and completed some contracts. Ms. Buller found such a mentor, bought her lunch and was able to break in. “Don’t go at it alone,” she advises.

COMMUNICATE AT ALL TIMES: Women business owners generally have wonderful communication skills, and in tough times that’s particularly important.

“Communicate with clients , customers, employees, debtors. The worst thing is when people don’t know what’s going on and they get panicky,” Ms. Feldman said.

While you don’t need to disclose every financial detail of the business, letting people know the broad outlines makes everyone feel like they’re on the same team and they’ll be more willing to pull together, as well as to make sacrifices.

THERE’S BUSINESS IN HARDSHIP: For better or worse, economic hardship also provides new markets - from the foreclosure business to self-help books and career coaching and boot camps and more – and women entrepreneurs should be watching the trends and flexible enough to take advantage of the opportunities if they can.

TAKE CARE OF YOURSELF: While almost everyone is experiencing some fear, anxiety and frustration, it’s important to take time to balance your life with friends, family and “me time. “ Don’t forget that you’re not alone. Sometimes it’s enough, NAWBO members said, for women business owners simply to get together to “cry and hug each other,” and then to go out and grow their companies.