The 20 – Teens What B u siness Leaders Should Do TODAY to Prepare for the Next Decade Dr. Bill Conerly for Book Manufacturers Institute November 8, 2010

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Issues for the 20-Teens Economic environment Business Credit Baby Boom Retires Information Technology Sharing Information

What Would You Do Differently In a More Cyclical Economy? Monitoring sales, industry trends, economy? Plan for smaller runs & shipments? Leaner inventories? Equipment suitable for large runs and small? Less leverage? Strategic move to more stable sectors?

Economic Environment in the 20 – Teens Average growth rates a little slower Faster growth in emerging countries More cycles than last 25 years

Issues for the 20-Teens Economic environment Business Credit Baby Boom Retires Information Technology Sharing Information

Banking Challenges in the 2010s Too much real estate concentration Regulators worried about risk Regulators worried about capital Investors think the industry stinks Less flexibility to innovate

Business Finance in the 20 – Teens Credit cheap when available Credit available w/ top quality financials Credit scarce with poor financials Asset-based lenders also tight

Issues for the 20-Teens Economic environment Business Credit Baby Boom Retires Information Technology Sharing Information

What Happens When the Boomers Retire? Investment Issues Labor force issues

Impacts of Higher Tax Rates Personal: Look at nest-egg net of taxes Business: Employee retention challenge for those who don’t HAVE to work (seniors, spouses, teens)

Strategies for Tight Labor Market Good recruitment Quality hires Look for untapped pools of talent Retention Poor managers lose employees How to retain seniors?

Issues for the 20-Teens Economic environment Business Credit Baby Boom Retires Information Technology Sharing Information

Who’s Your Good Customer? LilaBill Low volume Price sensitive Costly to serve High volume Not price sensitive Electronic transactions

feedback

Technology in the 20 - Teens Know your costs and revenue By customer By product Feedback: Prompt Accurate Specific

Issues for the 20-Teens Economic environment Business Credit Baby Boom Retires Information Technology Sharing Information

External wikis for customers Internal wikis for employees, vendors, franchises

Social Networking for Business Examples:Twitter LinkedIn Who Do You Need to Connect? Employees, Franchisees, Vendors, Customers Tools:Social Networking Sites Free Conference Calls List-serves

What to Do Today To Prepare for the Next Decade Re-Optimize for more cyclical economy Evaluate your financials: good or poor? Explore many credit options Experiment with keeping seniors on the job Know your numbers: costs and revenues Set up feedback systems everywhere Identify knowledge to be shared Set up networks for people to share expertise

Questions? ConerlyConsulting.com