• July 6, 2011 
• Guest:  Glenn Sturm, Partner at Nelson Mullins Riley & Scarborough 
• Listen to Show

Today’s guest is Glenn Sturm, a partner with Nelson Mullins law firm here in Atlanta.  Glenn has a wealth of knowledge about public markets and we will join Glenn shortly for a very interesting conversation. 

 But, first we start today with our Business Tip of the week – Re-engineer your business to maximize your business value. 

1.  We have been through a financial hurricane and everyone had to adapt.
   1.  Markets melted down
   2. Banks hammered and many failed
   3. Real estate fell off a cliff
   4. Customers reduced purchases
   5. Customers began paying late
   6. New financing or refinancing has been very difficult 
2. We reacted, as best we could, by taking defensive steps in our businesses.
   1.  We cut back on all non-care expenses
   2. We delayed expansion plans
   3. We reduced head count where we could
   4. We reduced physical occupancy footprints where possible.
   5. We tried to reduce all costs to equal lower reserve. 
3.  Unless another shoe drops, we are now looking up at a changed business environment and are restarting larger team business plans (even through uncertainty). 
4. Time to take offensive steps to create a new business focus and plan.  Take an approach of a “blank sheet company” (start up) and challenge all your activities, one by one.
   1.  Your customer base
      1.  Some of your customers may have been damaged by this storm - yet to know their situation and revise credit terms, or adjust your relationship to match their needs, without danger to you.
      2. If some customers are not profitable, very customer service intensive and slow pay.  Consider firing them.  80-20 rule.
      3. Relook at desirable customers again and ways to offer innovative new services to draw them towards you.
   2. Your revenue stream
      1.  Look for Recurring Revenue opportunities vs. One Shot Sales – Recurring Revenue is much more valuable than One Shot Sales revenue to potential buyer.
      2. Look at and smooth out seasonality – programs, promotions and off season strategies to fill low points in your year.
   3.  Your business systems - where possible automate or outsource. 
      1. Back Office – accounting, order entry, purchasing, cash management, document management.  Look at vitalizing all of this.  Mature platforms available that allow you to go paperless, mobile and in the Cloud.  Simpler, less expensive, real time and accessible.
      2. HR department and payroll – most companies fail in compliance and effective administration - outsource.
      3. Connectivity, Telecommunications & IT
         1.  Technology moving to the Cloud
         2. Simplify your IT activities
         3. Remote backup, D.R. & IT monitoring – lower costs.
         4. Many vendors provide VOIP telephone, internet and data communications with Zip Trunk technology that is more flexible than legacy T1 lines and cheaper.
         5. Video conferencing now lowering travel costs for many. 
5.  Vendor Relationships
   1.  Negotiate wherever possible for lower prices, better terms, better services and coordinate digital interfaces with their systems.
   2. Rent and other occupancy costs - maybe landlords, will be flexible and responsive to needs of tenants. 

Underlying themes in all area: 

• Customers you choose not only satisfied but loyal
• Employees committed to the company and know the company is committed to them.
• Cheaper to rebid or renegotiate
• More automatic and where possible, digital (ITC)
• Real time – reduce delay in systems
• Eliminate errors and waste
• Growth planned – don’t outstrip your finances; work with your banker.

 The Good 

• In midst of physical catastrophes, world seems resilient. 
• Economic growth slow, but continues. 
• Small uptick in real estate prices may signal a floor.
• Some markets are firming up and underwriting is occurring, in fits and starts.
• Rates are still low with prices waiting on demand. 

The Bad 

• D.C. not able to fix obvious problems.
• Cash and currency being rendered irrelevant.
• Specter of financial/credit crisis ignored
• Inflation impact ignored
• “There will be a price to pay”, if no fix. 

The Ugly 

• Greece
• Euro
• Consequence of out of control spending being felt
• Are we watching?

 Now with the third segment of our show, I’m pleased to introduce a long time friend.  Glenn Sturm is a partner of Nelson Mullins Riley & Scarborough LLP in the Atlanta office, where he practices in corporate law, and technology law.  View Glenn’s entire bio here.  

1. Tell us about your background and some of your areas of specialization 
2. How are the public markets working? 
3. What are the trends with IPOs? 
4. How has Sarbanes Oxley affected this world? 
5. What needs to happen in the market to proceed and prosper? 
6. What do you anticipate trends will be over next few years?