Companies that may Point to Recovery

There is no question that we are now in a recession and it is a severe one at that. Now the thing people will look for are indicators that the economy is improving. Some companies might provide the signs of when the economy is finally heading in the right direction (according to 247WallSt.com).

Target. The giant retailer is known as one who caters to people who are seeking a little more than what they can get from Walmart. That "little more" includes slightly higher prices (if, for no other reason than the fact that Target cannot buy at the volume of Walmart) and that has led to some economic slowdown for the store. So far Target sales has seen a noted drop this year. When Target begins to see an increase in sales, you might also see a turn around in the economy.

Starbucks. At the height of rapid economic growth, Starbucks was an economic pleasure palace for the happy middle class. However, with declining prosperity, people are bailing out on the coffee shop and many have remorse for the dollars they spent on a small cup of coffee. Part of the problem is plain out saturation. Even after closing hundreds of stores in 2008, I personally know an area in the very affluent Galleria section of Houston that has at least 4 locations in less than a square mile area. When these come back, the economy will be on the mend as well. You will likely see that after a turn around at Target.


CBS. It is now the only major broadcast TV network that largely has all its eggs in one basket (TV). Its competitors -- Fox (which owns radio, print, web platforms, and TV), ABC (Disney World and other entertainment venues), and NBC (whose parent company is GE, which seems to own everything) are far more diversified. The Stock Market has punished CBS' lack of diversification as its shares have dropped. When those shares rise, so will the economy's prospects because this form of broad base advertising is expensive and it will show businesses are believers in the prospects of growth. This too will come a little later in the recovery process, in my opinion.

Dell. The Dell Computer company, which was once considered a leader in its industry, is now considered one of the weakest. In spite of its efforts towards innovation and customization, it still finds itself limping behind. When Dell has a turn around, the economy as a whole will be enjoying serious recovery. Mind you though, Dell was struggling when the economy was fairly strong, so it too may take a while to catch up.

E*Trade. The weakest of the big three online trade companies has been among the longest to suffer. This company, too, is an indicator of how the economy is fairing.

With the current policies of the Obama Administration, it will be surprising to see these (or other businesses) improve. However, when their is a turn around, these five companies will be among those to watch.

Kevin Price is Host of the Price of Business, the longest running show on CNN 650 (M-F at 11 am), AOL Radio, and CBS Radio. Eric Bolling of Fox News and Fox Business says that Price’s Blog “is very influential and moves the blogosphere.” Steve Moore of the Wall Street Journal calls Price the “best business talk show host in the country.” Find out why and visit his blog at www.BizPlusBlog.com and his show site at www.PriceofBusiness.com.

Cash Flow "Insurance": A Lesson from Ike

On today's Price of Business I interviewed Larry Korkmas, who is an expert on business disaster and recovery (click image for another recent interview on the subject). On today's show -- the first live one since Hurricane Ike -- we talked about the smart things businesses did and are doing to prepare for disaster.

So many individuals discuss the importance of insurance. There is no doubt about it, you want to protect your property and valuables for a situation like Ike. Unfortunately, insurance only protects cash (or property with money), but it doesn't protect the thing most important to keeping a business going and growing, which is cash flow. Cash flow comes by being able to take care of customers while others cannot. When you hire an expert like Korkmas, companies come as close as possible to having "cash flow" coverage.

Disaster preparedness is the business equivalent of playing "small ball" in baseball. It is about making sure the little things are done in order to keep your company online. Here are just a few examples:

* Companies should maintain a traditional dial up Internet plan so that they will have back up for their WIFI.

* Businesses should get additional wireless from their cell phone providers that they can use on their laptop. "Back up" is the name of the game for disaster.

* Companies should consider getting an 800 number that cannot be affected by such disasters so their clients can at least leave messages, regardless of the phone situation.

* They should know, in advance, the capabilities of the building they work in when it comes to disasters. Does the building have generators? How has it held up in past storms? You want to always ask these questions before disaster hits.

* Following a disaster, be prepared to get on the phone and make calls, put information about your business status and how companies can get help from you online.

* If you can't help your clients in the primary service they have you for, help them any way you can so that when they get to normal, they would include working with you as a part of that scenario.

* Redundancy is crucial. Backup everything on your computer and make sure that it is outside of the disaster area.

Most of the items that will keep you available to your customer are not expensive, but are very valuable. Simply being able to be there for your customer is the most important element in your company's long term survival. Many companies will not be going on long after Ike, those that do will be the ones who placed high priority on the little things that kept their lights on, both figuratively and literally.

Kevin Price articles frequently appear at ChicagoSunTimes.com, Reuters.com, USAToday.com, and other national media.

Kevin Price is Host of the Price of Business (M-F at 11 AM on CNN 650) and Publisher of the Houston Business Review. Hear the show live and online at HoustonBusinessShow.com. Visit the archive of past shows here.