A Message from CWE's CEO, Andrea Silbert

Dear Business Owner,

Presently, we are witness to the most challenging economic environment that we have faced for many years.    At CWE, our assessment is that the economic climate will continue to worsen and is unlikely to turnaround until well into 2002, if that.  We are concerned that many of your businesses will be adversely affected by this downturn. I am sure many of you are feeling the pinch already.

We want to ensure that as many women-owned businesses as possible survive and thrive during this difficult time.    In addition to challenges, there are also opportunities in an economy like this to strengthen your company.    For instance, you will see increased spending with government entities such as the Department of Defense.   This could be an opportunity for those of you who provide services or products that might be of interest to them.  In addition, some of your competitors may be looking for exit opportunities given the market.  Therefore, you may find the opportunity to grow your company through the acquisition of a small competitor business.  Lastly, you will see increased opportunities for those companies who provide security products and services.

For others, the best strategy may be to reduce your overhead and take the steps necessary to ensure that your business will have adequate cash to meet its obligations until economic conditions improve. You may not be in a position to acquire a competitor, but the companies that survive will be in a position to increase their market share as less strategic companies in their industry are forced to close their doors.

Forward thinking companies are most likely to survive in this environment and come out stronger once the recession is over.    You should be spending time right now doing some strategic planning and scenario analysis.  The types of questions you need to be asking yourself are:

          What will happen to my business if sales decrease by 10% or 20% or 30%?

How can I use economic indicators to predict my sales for the next six months?

What steps can I take now to make sure I will have enough cash to run my business next spring?

How much should I be spending on marketing?

Should I consider laying off some of  my employees?

Are my price points too high for an economic recession? If I lower them, what steps can  I take to reduce the negative impact on  my gross profit?

Do I need a line of credit to help my cash flow?

I personally want to take this opportunity to encourage you to reach out for the assistance necessary to sustain your business through this  difficult time. CWE can help you figure out the answers to these questions.    If you would like to discuss our services to help you at this time, please call the appropriate CWE staff member below.    If you are concerned about cost for these services, we have a sliding scale fee and also can offer you free services at our offices through SCORE (the Service Corps of Retired Executives).

I wish you the best of success in your business endeavors and look forward to a stronger tomorrow.

Sincerely,

Andrea

A special thanks to CWE's founding sponsor: