The Fremont Group has clients across the country and contacts in most every industry which has given us a cross-section look at the effects of this shutdown. The crisis has brought disruption; the disruption will bring change; and change will bring opportunity. The post-shutdown world will no be the same. Sorry. If you are yearning for things to go back to where they were you have already lost. The shutdown will accelerate change. Companies and industries that were already in trouble will disappear faster. Companies and industries that have been flexible, well-managed and have had strong leadership will thrive. For example: no doubt more people will now work from home–think about the consequences of this. As fewer people commute to work the need for autos will decline. People will keep their cars longer and will alter the types of cars that they buy. Downtown locations will not have as many employees resulting in less office space rented, lower rental rates, fewer customers for downtown businesses. And as there is less need to live downtown combined with a desire for more personal space city living will become less desirable (expensive) and suburban prices will increase. This exercise can be done for every industry.
We have some data to share. ALL of our clients received “loans” from the federal government that they won’t ever repay–an average of over $60,000 per business! (And these are small businesses some with annual sales of about $750,00!) Why–they had competent advice that kept them focused and they moved quickly on the opportunity. All of our clients will survive. Why–they and competent advice that kept them focused and they had a business plan that kept them prepared.
The “financial manipulators” of the past 40 years have done a great disservice to small businesses. A company with large debt can leverage their earnings but they go out of business in the downturns. Companies attempting to “build a business” for the purpose of selling it and making their money from the sale go out of business in a downturn. Companies without an effective financial structure that produces regular profit and from that profit retains sufficient liquid assets to meet their obligations go out of business. Few owners do this on their own. Having a Success Partner who eyes the long term and provides constant focus is the difference between success and failure.
We take our own advice. Our own operations have also been significantly restructured. Our small overhead has been all but eliminated and our travel to client sites has been replaced by video conferencing. This allows us to significantly reduce our rates and serve even more people–and serve them better as additional experts can be brought in to supplement immediately. I predict that within 10 years our major auto companies will either fold or will be producing a significant amount of their manufacturing in products other than cars. What will happen to your industry? Let’s talk.
We are now producing monthly webinars at no charge and out initial consultations are now done via video conference which makes them affordable for anyone–ask yourself, “Can you afford not to?”
Dirk Dieters, Executive Director
The Fremont Group
303 338 9300