In recent months Tennessee’s economy has shown signs of improvement, slight as they may be. Jobs have been added to the economy across a number of sectors and the unemployment rate is decreasing. While we’re not back at pre-Recession levels, perhaps this signals that the economy has turned a corner.
A few months ago, Tennessee unemployment data was bleak as all 95 counties reported increases in the unemployment rate, increases in initial unemployment claims, and the instances of mass layoffs were increasing across the state. Now, the news is different. The Tennessee Department of Labor & Workforce Development reported that total non-farm employment increased by 24,300 jobs in May 2010 and that unemployment rates decreased in 86 counties. After working through the past 24 months I’ll take good news wherever I can get it.
Enough rambling, on to the point. It’s safe to say that entrepreneurs and small business owners who have survived the past 24 months have been doing something right. It’s also safe to say that as the economy improves there will be increased opportunities for businesses. Potential competitors may have gone out of business, potential customers may be looking for a better deal, or a number of other variables could produce new opportunities. Regardless, it’s important to be prepared to capitalize on opportunities as they arise.
Entrepreneur Magazine, as well as a number of other sources, has recently published articles on preparing for growth and success in your business. A couple of salient points:
On Financing: The faster you grow, the more cash you're likely to need. Growth financing is every bit as hard--if not harder--to obtain than startup funding. Develop and maintain strong relationships with your funding sources and be sure to have primary and backup sources available.
On Employees: The right people doing the right jobs is absolutely critical to sustain growth. Create an environment where people are willing to work through the growing pains. In addition, take care of your suppliers, professional advisors and anyone else who can have an effect on your operation.
On Customers: Know what they need, but more important, know what they want and do everything you can to give that to them. Most important, communicate. Never let your customers wonder what's going on.
On Core Business: Stick to the business your company knows best. Be sure any diversification or product line expansion you do makes sense. If it has nothing to do with your core business don't get into it just because it seems like a good opportunity.
The bottom line is this, be just as prepared to handle success as you are to handle failure. Beyond having the foresight to understand your market, plan and continually update your business plans, and maintain strong relationships with a number of people who can guide you down the path to success.
At Pathway Lending, we’re a little different than most traditional banks. Our core business is helping your business take advantage of market opportunities and grow – bottom line. If you’re a business owner in the state of Tennessee with an opportunity but no capital to make it happen, please visit us online and check out our Loans Page. Our staff of lenders can help you plan for and achieve growth.
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