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The New Jersey Small Business Development Centers Launches Recession-Proof Initiative to Help Businesses Navigate Tough Economic Times Newark, N.J. (September 26, 2008) – The New Jersey Small Business Development Centers (NJSBDC) network has launched a new initiative that will equip small business owners with the tools to help them weather the financial fall-out, and remain recession-proof in their business operations. In fact, this new NJSBDC initiative includes a plan that will help small businesses retain jobs, and continue to generate revenue. The NJSBDC is calling on the New Jersey Legislature and Gov. Jon Corzine to help small business owners in their time of need. “This is a time when citizens and businesses are feeling less confident in the way government is run,” said Deborah Smarth, NJSBDC Associate State Director. “Due to the severe loss of jobs, less U.S. Treasury revenues as a result of business bankruptcies, the Wall Street financial crisis, and nationwide corporate downsizing and restructuring, NJSBDC’s 11-center network expects that more New Jersey citizens will come to us for life support." NJSBDC’s Recession-Proof Initiative includes the following components in its seminars and counseling focus: 1. Update business plan to specifically deal with challenges in this recessionary period, including reducing unnecessary spending. 2. Analyze company products/services to address inefficiencies and under-performance areas. 3. Diversification of markets to stabilize or increase customer base. 4. Focus on "needs" not discretionary items for company revenues. 5. Restructure pricing and re-brand marketing of services/products to stress "value." 6. Restructure debt to provide greater flexibility for business owner/operator in terms of payment schedule. 7. Study or identify financing alternatives due to lenders' tightening of credit. 8. Re-evaluate human resources team to enhance productivity and efficiencies.
In addition to helping existing small businesses, the new initiative also has been devised to help fledgling business owners launch their companies. “We will have to help the increased unemployed rolls to find ways to survive in this economy by starting a business,” says NJSBDC State Director Brenda Hopper of the initiative. “We will be working even harder to support those existing businesses that want to keep afloat during this economic downturn.” “We must not forget that while infrastructure investments and public works projects may start the ball rolling,” says Brenda Hopper, NJSBDC state director. “Permanent and long-term private sector job creation stems from the small business sector. They create the majority of jobs in this state and nationally.” “Investment in assistance to small business owners across the State,” Smarth stated, “will bring sustainable growth and job security to the middle class. In addition, reducing taxes and regulation for small business is the most important public policy priority if the Legislature and Governor expect to provide a real economic stimulus package to the State economy.” NJSBDC’s 2006 report to the Legislature and Governor issued 26 recommendations on ways to help small businesses grow and create jobs. The NJSBDC has been very successful over the last few years in its efforts to grow small businesses in the Garden State. In fact, there were 682 more clients--a total of 6,290--counseled by the NJSBDC in Fiscal Year 2007/2008, than there was in fiscal year 2006/2007. In addition, there were 338 more jobs created and retained in Fiscal Year 2007/2008 than the previous fiscal year. Despite national recession and state job growth loss, NJSBDC helped facilitate the creation of 2,226 jobs by working with its clients during this time period, which was only 51 newly created jobs less than the prior fiscal year when the overall economy was doing much better. About NJSBDC The NJSBDC network (www.njsbdc.com), comprised of 11 centers across the state, is the premier provider of comprehensive services and programs for small business in New Jersey, helping businesses expand their operations, manage their growth or start new ventures. Expert staff and practicing business consultants help established small business owners and aspiring entrepreneurs develop business plans, find financing, identify new markets and expand their operations. This non-profit network is a federal-state-educational partnership, which maximizes resources for the small business community.
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