Board Set Membership Goal For 1998

Your Board of Directors, at its Annual Retreat on September 22, set a goal of increasing membership by a minimum of 20 (net) by the end of Fiscal Year 1998. To accomplish this goal your Board is looking to themselves and every other member for assistance.

As you go about your daily business encountering other business people in the area, congratulate and thank them for being members if, in fact, they are. On the other hand, if they are not currently Chamber members, find out why they are not, explain why your business is and encourage them to join.

Remember, this is your organization and can only be as successful as you all make it -together.

Welcome New Members

None at this time

Fund Raising Committee Hits the Ground Running

Your Fund Raising Committee with Rick Welch, Wabash Plain Dealer, at the helm has already been busy making plans for 1998. The committee has been trying to come up with programs and projects that will benefit business members, the Wabash community and your Chamber's bottom line all at once.

This energetic group of volunteers is definitely planning another Wabash Area Chamber of Commerce - Yearly golf outing; probably planning another Vegas Night and has already booked a one day circus for September 1st.

There will undoubtedly be other projects developed by this committee and, as they unfold will be communicated to the membership through this publication and other means.

Business Womeen's Council Hosts Luncheon

"And the winner of the door prize is....." Those were the words every woman present was waiting to hear, with their name at the end of the sentence. What was this door prize? A FREE massage session by Kendra Matthews at the Wabash County Hospital. Where was this door prize given away? At the October 2 Business Women's Council Luncheon.

The 1998 fiscal year started off with a BWC luncheon held at the Honeywell Center with Mike Johnson and Kendra Matthews. The topic was on stress and relaxation. While Mike did the talking, Kendra had a table set up and gave massages throughout the luncheon.

The Business Women's Council is being chaired this year by Kimberly Treska of Portraits by Kimberly. Other committee members are: Beth Eppley, Wabash CountyHospital Foundation; Pam Guthrie, Ivy Tech State College; Kelli Halderman, Halderman Farm Management; Brenda Ingraham, Ad Connection; JoEllen Lambert, Wabash County Farm Bureau Insurance; Beth Miller, Kategories; Marcy Newhouse, Halderman Farm Management; Diana Owens, Wabash Plain Dealer; Lisa Rapp, Wabash County Soil and Water Conservation District; and Lisa Shemwell, S & R Enterprises.

They are currently working on the programs for luncheons in March, June and October. The council welcomes any suggestions you may have on luncheon topics.

The Business Women's Council luncheons provide an opportunity for business women to gather, not only for networking with other women, but to establish business contacts within the community. The council has also added Business Sponsors to the luncheons, which give businesses an opportunity to promote their business to the women.

For more information on the upcoming events, contact any of the above members or the Chamber office.

Managing Your Cash Flow

By Richard Feinberg, Ph.D.
Consumer Sciences & Retailing Director
Purdue Retailing Institute

Business managers need to manage cash flow as much as they manage any other part of the business. You are probably so busy in the day to day operation of your business that you forget managing your cash flow. Most experts will tell you that the way to generate more cash flow is to generate more sales. This, however, ignores some practical areas that affect cash flow. You may want to consider the following tips:

1. OPERATING EXPENSES: Find ways to reduce or eliminate expenses and it goes right to the bottom line. Multiply the $50 saved this week by 52 weeks and you can see the potential here. Shop for the best insurance. Shop your utilities (when possible). Adjust the thermostat. Explore how investing in better fixtures or equipment can pay for itself. Personnel expenses eat up cash. Minimize overtime, minimize employee down time. Review your operating expenses on your income statements closely. Pick out the five biggest expense items and cut back. Some of these expenses may not be needed at all.

2. IMPROVE PROFIT MARGINS: Pin point pricing allows you to raise prices on items where you can and increase profit margins. Ask yourself: what are those things that people come in to buy; what are those items that they buy when they leave? You must be competitive on price sensitive items but you can raise prices on thousands of items by 5; 10; or 99 cents, all of which add to your bottom line directly.

3. TAKE ADVANTAGE OF TRADE TERMS: Don't pay early but on time. Take advantage of vendor offers for items you might be able to buy at a discount a bit early but remember your storage costs!

4. NEGOTIATE WITH YOUR LANDLORD: If you are in an area of weak real estate values you might renegotiate with your landlord. High vacancy rates should, all things being equal, mean leverage (although the logic of some landlords confuses me at times as their store fronts remain empty for 10 years as they try to get $10 more that they think they deserve). If the landlord is unwilling to renegotiate, consider alternative sites. You might find a better spot for the same or less money.

5. BANKERS SHOULD BE YOUR PARTNER: Ask your banker about in house cash management programs that they might have. Renegotiate loans to better interest rates or repayment terms.

6. UNDERSTAND THE SEASONALITY OF YOUR CASH FLOW: Which 6 months do you have excessive cash you could invest in short term interest instruments? In which months do you need cash because of the inventory orders? In depth knowledge of your cash flow allows you to forecast your needs, control your expenses, maximize profit on cash, earn interest and dazzle your banker when you ask them for short term loans.