When it comes to surviving the recession, businesses don't have to just wait it out. Whether it's cutting expenses, reducing taxes or working with clients and suppliers, being proactive to help the bottom line is the best way to cope with a tough economy. That's the advice three top business consultants delivered to NJBIA members at the Association's April 3 seminar: Surviving the Recession! Expert Advice for Running Your Business in Tough Times. Lloyd Bettis of National Bureau of Property Administration, Anthony Calascibetta of Wiss & Company, LLP, and Kevin Gray of J. Galt Associates spoke to more than 250 businesspeople, who also heard from Caren Franzini, executive director of the NJ Economic Development Authority, and Jerry Murphy, COO of the NJ Schools Development Authority.

"You can't just hold on and see what happens when the dust settles," Calascibetta said. "You have to be proactive." Being proactive begins with understanding how the recession impacts a company's vendors and clients. Determine what's the worst thing that could happen to your business (losing a big client, a key vendor going out of business) and develop a contingency plan to counter it, Calascibetta advised. Also, look for warning signs that suppliers and customers could be in trouble, such as slower payments or increased complaints and disputes. Maybe a vendor will develop delivery problems or will be out of the items you need. If so, contact customers after you make deliveries to make sure they are satisfied (disputes are a way of delaying payment), send invoices in a timely manner, and don't be shy about sending reminder notices.

The same philosophy applies to reducing property taxes. With real estate values plummeting over the last couple of years, many businesses are trying to save money by appealing their property tax assessments. "Most people have the impression that they have to wait until the appeals process," Bettis said. "Our firm has found that the key time to negotiate with the jurisdiction is during the valuation." In other words, if you think your property's value has dropped, make your case to the tax assessor in October when they assess properties instead of trying to change their minds after the fact. Even if it does not work, the company can still appeal the following April.

When it comes to cutting costs, the old philosophy was just to focus on labor and personnel, said Gray. Today, there are at least 50 "cost centers" where companies could be saving money without reducing their workforce. The idea, Gray said, is to question everything and create an atmosphere of constant cost control. He cited Toyota as an example, saying "they don't wait for an event to happen. They live and breathe cost control." Opportunities to cut costs can be found in all aspects of operations, including shipping and mail, energy, telecommunications, and more.

For businesses in need of assistance, the EDA's Franzini pointed out that there are new government programs designed to help during this recession. The new EDA Main Street Business Assistance Program helps businesses get low-interest loans and lines of credit from area banks. "It really is all about job retention," Franzini said, "and letting you as a responsible business stay in business." For more information on EDA programs call 866-534-7789.

New Jersey is also embarking on a $3.9 billion school construction program that can provide economic opportunities for contractors, subcontractors, engineers and numerous other businesses, according to Murphy. For details on how to get preregistered call 609-943-5955.

For more information, visit NJBIA's Recession Survival Guide on our Web site.

State Budget Revenue Projections Fall Again

The nonpartisan Office of Legislative Services (OLS) issued new revenue projections April 6, saying tax revenues are expected to fall $605 million short of what Governor Jon Corzine estimated in his March 10 budget address. Testifying before the Senate Budget and Appropriations Committee, David Rosen, OLS's budget and finance officer, said his agency projects an additional budget shortfall of $383 million for the current fiscal year, which ends July 1, and another $222 million for FY 2010.

Corzine's proposed budget currently allows for a $500 million surplus. If the new projections hold, lawmakers will have to find another $105 million in spending cuts or tax increases to make up the difference. For more information, contact

Meet the Legislature's Majority & Minority Leaders, April 17

Don't miss this opportunity to meet with the Legislature's Majority and Minority leaders. These are the elected officials who write the laws that impact your business. Don't wait until a new law is passed to make your voice heard. Meet Stephen Sweeney, Senate Majority Leader; Tom Kean, Senate Republican Leader; Bonnie Watson Coleman, Assembly Majority Leader; and Alex DeCroce, Assembly Republican Leader. They will discuss taxes, healthcare, economic stimulus legislation and regulatory reform, and they will also answer your questions.

This event will be held on Friday, April 17, at the Forsgate Country Club, starting with registration at 7:45 a.m. and ending at 10 a.m. The cost is $75 per person for NJBIA members and $125 for nonmembers. Register online now or call at ext. 213, for more information.