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Introduction
Word on the Street
vrecruiting TM
Thanks to everyone who was able to join us for the "Some Assembly Required: How to Make, Grow and Keep Your Business Relationships" seminar by Thom Singer on October 13th.
Need more information about vcfo's services?
Jerry McGuire
Managing Director, Seattle
(206) 328-8236
jmcguire@vcfo.com
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Introduction 
I can't believe that it is almost Christmas! Q3 has just ended and 2008 will have passed in less than 90 days. Thanksgiving will be upon us in about six weeks and then it seems life is a blur of activity- holiday parties and family activities right up to New Year's Day.
This time of year many of you are moving into budgeting and forecasting season for 2009. Given the widespread uncertainty permeating the economic environment, the budgeting process will take on increased scrutiny. Making sure your budgeting process is thorough and your assumptions are realistic will be a necessity for the upcoming year. Our recommendation is to cut as much expense as you can without jeopardizing your organization. Encourage participation in the process and challenge your team to remove ten to twenty percent of operating expense. You may be surprised at the opportunities for savings they come up with.
As the banking industry reinvents itself and credit tightens, debt and equity financing will be both harder to close and will carry a higher cost of capital. It is always better to take a proactive stance with your Banker - armed with well thought out logic and assumptions on your projections. The alternative of having the Banker call you when you are out of covenant always compromises your stature within the Bank.
October is a great time to anticipate other accounting and corporate governance activities. Unfortunately, they don’t take a break with an economic crisis. Year end corporate tax compliance, cash planning for year end bonus payouts and tax implications, defining 2009 schedules (such as pay dates and recurring meetings), and audit preparation are all areas that are best prepared for now.
Year end activities are usually in addition to rather than in place of our normal day jobs. Whether you are looking for help positioning in an uncertain economy, expertise in a certain area or an extra set of hands, we can help.
 Regards,
Jerry McGuire
Managing Director, Seattle
(206) 328-8236
jmcguire@vcfo.com
vcfo has worked with clients through tough economic times in the past and we are dedicated to helping with issues pertaining to the current economic downturn. Read on for a support option from vcfo.
In response to the recent economic events, vcfo has partnered with a number of creative funding sources in order to provide alternatives to our clients facing unexpected liquidity challenges. If you need help evaluating the economy's impact on your company, consider engaging vcfo to perform a Comprehensive Credit Review. We will evaluate your risk, optimize your existing financing, and secure alternative funding sources if appropriate. >> Read more
Word on the Street: Tips from our friends
How does a good company optimize their situation in a down economy?
Lou Cicio, CFO, Boundless Corporation
An economic downturn is a terrible thing to waste. Watch for opportunities where others are turning a fearful eye, initiate new plans with optimism and caution. Call customers and prospects and point out again your firm's benefits. Finally, keep your head about you and don't get caught up in all the doomsday talk.
Dave Lee, Partner, Sentient Ventures
The answer to this question can vary by age and stage of the company, type of product or service, and the market in which it is focused. However, in all cases, ensure that the operation has solid staying power. If the business can make it through a downturn with the fundamentals intact and better yet some momentum, then the company is likely to emerge on the other side with less and/or weakened competition and the related opportunity to accelerate growth and significantly enhance market position. As such:
1) Clean up the balance sheet – Make sure that the operation has a solid fixed charge coverage ratio on any debt. The old adage “cash is king” becomes especially true in a down economy.
2) Review the business assumptions and adjust as appropriate – For example, key customers might have financial troubles, which might make collections take longer than expected.
3) Reevaluate cash intensive strategic decisions and delay these expenses where reasonable – Regional/international expansion, aggressive hiring, moving locations, M&A activity, and new product launches may not be wise during this period. Once the economy recovers, this will allow for an accelerated and perhaps a lower cost opportunity to implement these strategic decisions.
vrecruiting TM - Recruiting Solutions from vcfo
Process Outsourcing, Professional Search and Consulting
We are pleased to announce the launch of vrecruiting - recruiting solutions from vcfo. vrecruiting offers a suite of recruiting solutions to clients including: recruitment process outsourcing (RPO), accounting and finance professional search, contract recruiting/sourcing services, temp to perm, and recruitment consulting. This may seem to some like an unusual time to be launching a recruiting offering. Our belief is that now more than ever it is important to have the absolute best and brightest talent on your team. Let us help you make that happen in the most cost effective manner possible.
With vrecruiting you get a highly effective, results-based recruiting partner with a proven track record of producing extraordinary results. Our unique true team approach leverages the vcfo network and team of financial executives to identify and recruit the best candidates. vrecruiting has solutions ranging from conducting a mission critical finance executive search or rapidly hiring a team of software developers.
If we can be of assistance to you, or to anyone in your network seeking to fill a position or a candidate in need of a position, please contact Clint Merriman at cmerriman@vcfo.com or (425) 691-1808.
Read more about vrecruiting.
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