Holiday Message from John Hyde to NAPL Member-Clients

Last year at this time, some thought the world was coming to an end. Yes, things are better today, but there's lots of pain in our industry. For all of 2009, I've been buried in the NAPL "emergency room" with victims of the printing industry implosion caused by structural and economic forces. Solutions have included distressed sale of business, debt restructuring, orderly liquidations, partner buy-outs, alternative financing, bank negotiations to keep the line of credit in place, giving back equipment to leasing companies, working out personal guarantees......you name it....this is the underside of what happens when things go sour for an owner of a print and graphic communications company.

My message reflects this harsh reality: If you are going to "stay in the game" over the next few years, now is the time to take a deep breath and really "fix" the business, borrowing from the Jack Welch paradigm of "fix it", "sell it", "liquidate it" as the options for owners faced with challenges. For those who are unwilling or unable to make the transformation changes, take charge of your situation. Use the holidays to connect with family; then come back in 2010 and plan for your eventual transition from ownership.

That said, NAPL member-clients who are "healthy" companies have taken steps to come out ahead when the recession redistributes market share. They've used the bad economy as a jump start to change business practices, eliminate under-performing employees, and, generally, to gain a "fresh perspective" on what it takes to sustain and build the company. Many have pursued Growth by Acquisition as a strategic "push" for gaining new customers.There is hope for the 5-10% of the industry that falls into the category of being "leaders".

So whether you are in a world of hurt, or treading water, or now seeing signs of life, take care of yourself this holiday season. Then in 2010 make it a priority to work "on the business", not just "in the business."

And don't hesitate to call NAPL for help in any aspect of "fix it", "sell it" or "liquidate it".

Happy holidays, John