Ways To Survive A Recession

lncreased competition, a shortage of capital to borrow and additional government regulations make owning a profitable business tougher than ever.

Solutions to these challenges exist. Ily adjusting to the changes, your company can take advantage of lvailable opportunities.

Most small businesses think they have to be large or have lots of money to market, but marketing is simply presenting your product or service to people who need and want it. You can determine where sales are coming from (walk-in customers, referrals or advertising) by analyzing records from the last three years. With this information, you can assemble a mailing list. Send out mailing pieces at least four times a year. Add to the list as you go.

Survivors in the 1990s will be the conrpanies that know the magic ol budgeting. (iompanies are learning to pay attention to where their money is going and cutting costs as necessary. One way to do this is by subcontracting services instead of having employees on payroll. Although the hourly rate is higher, you pay only for the services you use. Try to renegotiate with suppliers, landlords, insurance companies and other vendors to reduce overhead.

The current credit crunch has hurt all businesses, especially smaller businesses. In order to coDe with their own problems, many banks have called in existing loans or tightened credit requirements.

The Small Business Administration (SBA) is an often overlooked source of credit. Their loans are more available and affordable than other types offunding and can help a business to grow and profit. While most credit sources are shrinking, SBA loan availability is growing. lts funding which totaled $3.5 billion in 1990, is being increased to $3.6 billion this year.

Profitable companies at least two years old with collateral and a specific use for funds are eligible for SIIA financing. Advantages include easier qualifying, more generous financial ratios and longer payback periods than traditional bank loans. Term loans range from seven to 25 years, fully amortized, with no penalties or up front fees. Disadvantages for some companies include dealing with government red tape.

Working with a competent broker, you can qualify for an SBA loan within two days of submitting three years of company tax records and a personal financial statement. Brokers are usually experienced in working with both the SBA and banks and provide the service at no cost to the borrower.

By marketing your business, keeping costs in line and having suflcient capital, you can keep your company in shape to not only survive, but to be a top performer.

Personals

(Cotttinued Jrom page 29)

Jean llamburg, Precision Redwood Manufacturing, Cloverdale, Ca., is vacationing in Germany during Oktoberfest.

Walter and Gina Beinecke, Silvan Inc., Santa Cruz, Ca., are the new parents of Walter Evanr bom Sept. 16, 1991.

Stacy Raymond has been promoted to national sales mgr. of glue-laminated beams at Filler King Co., Homedale, Id., reports pres. M. C. "Bud" Filler.

(Please turn to page 54)

News Briefs

(Continued from page 18)

A proposal by the t./.t. /irlr c( l,l'ikllilt' Sr,n,ltt to drop nlore than 3 million acres fronr the critical habitat set aside for the northern spotted owldown to 8.2 acres is now open fbr public conrnlents

Than 2O Dltnutea The ..BAND.ADE''

Sanml fuys rcanmubtion of fundlng normolly requlres o spafuI trtp to the landflll.

Employees lrrite the danga and work to frurnsler to dumpster or truck. A teus mlnutq uhenunryklng untt4

Anti-Logging Bill OK'ed

The California legislature has passed a timber bill severely restricting clear cutting and other logging practices, despite heavy lobbying by Louisiana-Pacific, Pacific Lumber Co., Simpson Timber Co. and other timber firms.

The "Sierra Accord" still faces possible veto by Governor Pete Wilson, who had backed a less restrictive alternative supported by L-P.

The new bill arose from a compromise struck earlier between environmentalists and the state's largest timber owner, Siena Pacific Industries. The firm sought a compromise fearing tougher restrictions if details were left up to voters.

The bill bans clear cutting on old gowth lands and limits clear cuts on newer forests to no more than 20 acres at a time. Current law permits clear cuts up to 120 acres.

It also restlicts cutting in watersheds, requires larger sections of u'ees as buffer zones between clear cuts, and includes other provisions to protect wildlife and slow harvesting.

Restictions do not apply to federal

The Merchant Magazine land; about 8 million of the state's 16 million acres of timberland would be affected.

More Owl Battles

Lawsuits challenging implementation of the Endangered Species Act by the U.S. Fish and Wildlife Service and their regulations defining "harm" and extending the "take" prohibition to all threatened species were filed in the District of Columbia by the Sweet Home chapter of Communities for a Great Oregon.

The plaintiffs including individuals, communities and companies from the Pacific Northwest, the Southeastern Lumber Manufacturers Association and Southern Timber Purchasers Council charge the rules were adopted without proper public notice and comment periods.

USG Gorp. Restructuring

Motivated by worsening conditions in its construction based markets, USG Corporation deferred principal and interest payments totaling $145 million and is seeking to restructure its debt.

Bank lenders and lead banks for the major producer of wallboard have indicated their willingness to participate in the restructuring plan which involves a debt exchange proposal, sale of DAP Inc., a caulk, sealants and adhesives subsidiary, extension of the current bank debt amortization schedule and substantial equity dilution,

The company expects to complete the restructuring before the end of the year. A spokesman said the corporation has no intention of filing Chapter 1l and will devote all its attention and resources to an out-ofcourt restructurine.

Bar Code Petition Request

To simplify the bar coding process on wood moulding, the Wood Moulding & Millwork Producers Association is asking moulding manufacturers, distributors and retailers to sign a petition to the Uniform Code Council regarding a uniform industry bar coding standard.

According to the WMMPA plan, WMMPA certified companies would be permitted to use the copyrighted bar code for softwood (WM) and hardwood (HWM) profiles. Each bar code label would also contain a manufacturer's name and/or an identification number. "It is important that the system identify the manufacturer of a profile in the event there are any questions about the product," said Bernard J. Tomasko, WMMPA executive vice president.

The system would help bring order to the myriad of bar codes which now exist for a single moulding profile and species. Under the plan, the first five digits of the bar code, which reprcsent the vendor, would be a single number for all those using the WMMPA standard. The second five digits, which represent the product code, would be specific numbers for each softwood and hardwood profile and species.

To be certified, manufacturers would apply to WMMPA 's bar codes committee. The committee would confirm that the proposed label meets the minimum form and content standards.

For a copy of the petition, contact the WMMPA, P.O. Box 25278,Portland, Or. 97225, or call (503) 2929288.

lnsulation From Newspaper

Louisiana-Pacific Corp. has introduced Nature Guard insulation products made from recycled newspaper.

The line includes loose-fill insulation which has a higher R-value than fiberglass, with none of the irritation and health concems. Nature Guard has also pioneered a cavity spray insulation process for new construction that completely fills spaces between studs before drywall is applied.

"Wastepaper represents the largest untapped forest in the world. And the more we use of this abundant mw material, the better it is for the world's environment," according to Harry A. Merlo, Louisiana-Pacific's chairman and president.