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Industry happenings have a great tendency to foretell evolutions in services and products handled by small companies Because of advancing technology, things change quickly Comparable data, including rule-of-thumb ratios, tell only of past occurrences Where change is slow or static, that is acceptable information; however, given the pace of change we now endure, I wonder how long the past can be counted upon to forecast the present and, more importantly, the future Information supplied by industry spokespersons, because they use the same standards they pass out to the public, may not be nearly enough to go on Quite often underfunded when memberships are shrinking, they may not always be the watchdogs for change There is no replacement for reading about, listening to, and overtly examining what s being reported in the news with regard to pressures on industries and small companies alike If you are considering a small grocery store, call your local independent merchants association and/or distributor then visit the nearest giant superstore Unless you can nd a niche for long-term operations, the small business you are considering may eventually be gobbled up Where s the value in cash ows that may be strong now but could be waning in the near future If the small business you re considering is in the path of a technological advance, call the industry to determine what insurance for growth can be had By all means, check what developmental explorations are on the horizon that could make your company s short-term advantage obsolete over the longer haul When outlooks portend retro tting operations to
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survive long term, what might be the cost to reorganize, and what values do current cash streams play in the process No doubt that intangible values might subsequently shrink, but what about values in tangible assets that may become obsolete, or with those required to be purchased new In this tumultuous period of international change, you ve got to really think hard about what might prevent the small company from staying around By the same token, small companies that are likely to hang tight merit real attention and might justify conditions of future-oriented values The vast majority of small companies, however, will be somewhere in the middle, and you won t be able to tell future existence through industry sources for sure What s been printed may be obsolete, and answers may lie between the lines quite possibly, forever to be found between the lines Bear in mind that the expense of dues prevents many small businesses from joining trade associations And there are, of course, a plethora of other reasons that small-company owners do not join associations or trade groups Your own accountant or banker may be able to ll in the gaps left at the end of your research or in some instances they may be able to supply all that you want to know Some minimal questions that should be asked of industry representatives are as follows: 1 How many members does the industry association have 2 Is the membership growing 3 Describe a typical member rm 4 Does your group lobby in Washington, DC, for the bene t of your members 5 What are the major issues confronting your industry today 6 What are members in general doing about these issues 7 What is the industry association doing 8 What services do you provide to member rms 9 Do you collect, consolidate, and analyze operating histories on member rms If so, what must I do to obtain a copy 10 What do you forecast as the longer-term outlook for the industry and member rms 11 What speci c advice do you give to member companies about long-term survival 12 Do you offer seminars and/or training sessions to your membership for increased ef ciency to their operations
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