OPERAIING OPPORTUNITIES

WALLY LYNCH Paid Associates PO. Box 741623 Dallas, Tx.75243

HAT has meant boom to most of the country has brought gloom to the oil producing states. The farmers are in trouble too. In some cases this has been compounded by state laws that have never served twentieth centurv economies.

The sum total is a business climate akin to water skiing on roller skates. It's not uncommon to hear dealers sav "we've got twice as many lumber yards as we need." Another cry is "business is off40%r, but meetings are up 6006."

While much of the economic sluegishness in the oil srates is caused bv faitors out of the dealer's control. there is little doubt that many an operator is a victim of his own past success. The expansion and growth experienced in the area in the past l_5 to 20 years have been nothing'short of phenomenal. Busrness cascaded through open doors as the snowbirds flew south to set up permanent residence.

Being in the path of progress was instant profit. For all practical purposes, a managerial base was spawned, put in place and matured without ever havins to fight its way out of a recession. Adverl sity has not been part of its agenda.

A more successful group of entrepreneurs has probably never before existed. Entrepreneurs, independent in nature, easily by-pass the fact that their success does not automatically imbue them wilh everything imporlanl to know. Thus, it's business as usual exceot business. as in sales dollars. is a change that cannot be made by decree. The forces behind today's "Sales" are far too powerlul to be mitigated locally or regionally by even the best of manaqers.

Those who emerge from this down cycle in a viable position won't be the same as when they went into it, but they will all have reduced expenditures below sales revenues. The profit culprits don't change from down cycle to down cycle. Everyone knows about people and inventory, but not everyone has done something about them. lf you think all of this is trite and can't serve your company or your area, let us recommend an old merchant's ploy. Look behind you! Look back to that year when your sales volume was at todav's level. Llse today's annual rate because you can't change the economic forces currently dictating the sales rate. What you can change are the expense rate and the pattern for successful operation. Compare the now "Operating Expenses" with the then "Operating Expenses" and cut the cloth to fit. You did it before, why not again today?

The only day we have to work with is today; tomorrow is not today. lt is tougher to shut down a facility than to open one; reducing its expense is the toughest of all. In the meantime, business must go on.

Many have never advertised. They have been good neighbors, minding their own business, never heard from. lf we don't talk to neighbors, friends and even relatives we lose them. The same applies to customers.