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April 16, 2001
Welcome to the INDA Small Business e-Report, brought to you by INDA, Association of the Nonwoven Fabrics Industry. This is our first post-IDEA 01 Show issue, so it is time to get back to the basics of running a small nonwovens business in challenging times. Enjoy.
WHAT DO WE DO NOW?
So, IDEA 01 in Miami Beach, FL last month is now only a (hopefully) pleasant memory for the global nonwovens industry. What's a small nonwovens company to do now to keep in touch, get noticed and not only survive, but thrive in the tough business environment of mid-2001? Simple. Continue to read the INDA Small Business e-Report every month for tips, professional insights and news about the industry. It will be our pleasure.
SMALL BUSINESSES AMONG BIG ACHIEVEMENT AWARD WINNERS
While Procter & Gamble - which is as big as it gets in the nonwovens industry - walked away with one of the major awards during the inaugural IDEA 01 Achievement Awards ceremony that kicked off IDEA 01, a number of smaller nonwovens suppliers and producers also took center stage. The IDEA 01 Achievement Awards, sponsored by INDA and Nonwovens Industry magazine, recognized outstanding contributions to the industry in the past three years. The recipients were:
- Eastman Chemical received the IDEA 01 Fibers/Chemical Achievement Award for its Eastar Bio Copolyester, a patented raw material resin developed to perform for the useful life of a manufactured article and then completely biodegrade. Other finalists were Fiber Innovation Technology, for its Bicomponent and Specialty Polymer Staple fibers, and 3M, for its Nextel Flame Stopping Dot Paper.
- The IDEA 01 Equipment Achievement Award went to Dilo for its Hyperpunch Needleloom, which uses elliptical needle beam kinematics to move the needle in running direction of the material during penetration. Finalists were KT Industries, for its Stac-Pac, and Rieter-Perfojet, for its AirLace 2000.
- The IDEA 01 Roll Goods Achievement Award was presented to PTI, Inc., for its K-Flex Ballistic Protection Material, a fifth generation body armor material, which produces panels 25% to 40% lighter than the lightest aramid panels currently in the marketplace. Other finalists were Freudenberg, for its Evolon nonwoven, and Kimberly-Clark, for its Intrepid Pleat Filter Material.
- Colbond Geosynthetics received the Long-Life End Product Award for its Enkagrid line of soil reinforcement products. Other finalists were Hollinee Filtration, for its Electrostat filter media, and Western Nonwovens, for its PolarGuard thermal insulation batting.
- P&G received the Short-Life End product Award for its Swiffer cleaning product. Other finalists were Clopay Plastic Products for its Breathable Laminates and Kimberly-Clark for its Huggies Little Swimmers
- Finally, the IDEA 01 Entrepreneur Achievement Award was presented to Mogul Spunbond-Meltblown Nonwovens and Composites. Mogul now operates three production lines, with a fourth high-capacity line slated to come on-stream in 2001. The other finalists were Jentex, a manufacturer of meltblown nonwovens for medical and filtration markets, and VersaCore, a privately held company specializing in a one-step process for converting two-dimensional roll goods into 3D structures.
These large and small companies should serve as an inspiration to all members of the nonwovens industry, no matter what size, that they can develop and be recognized for outstanding new products. Up next: The IDEA 04 Achievement Awards.
WHAT'S THE BUZZ? YOU TELL THE WORLD
With no major trade show scheduled for another year or so, just how does a company get noticed? Well, you could take the advice that well-known "buzz-meister" Emanuel Rosen provides in his new book "The Anatomy of Buzz."
- Entrepreneurs should start by getting out there and talking to people. Every industry has conferences and speaking opportunities (see item below). Be there, and get heard.
- Plant news about your company with people who are "opinion leaders." Others listen to what they have to say. Your targets should be association heads, editors and respected consultants.
- There are six rules to spreading the buzz: The message must be simple. It must be relevant and have some news value. Don't make claims you can't support. Ask customers to spread the word about you. Measure the buzz by conducting customer satisfaction surveys. Finally, listen to what people are saying so you can adjust your message accordingly.
- Once the buzz has started, keep it going. Get product into people's hands. Bring customers and potential customers together, either formally or informally. And don't be afraid to use the Internet to spread your buzz.
WEB SITE OF THE MONTH
There's nothing like free information for a small nonwovens company, and one of the best sources for all sorts of free advice (other than the INDA Small Business e-Report, of course) is www.successideas.com. The site offers a variety of free newsletters, articles and other goodies all designed to help small business owners solve everyday problems. Of course, they'll try to sell you some books and a Visa card, but that's not all bad, either. Topics covered on a regular basis include getting the most out of your advertising and marketing budget, retaining good employees and finding the right financing. We like the topic of one article: How To Make Your Business Run Without You.
WHAT'S NEXT ON THE AGENDA?
Just because the granddaddy of North American trade shows just ended doesn't mean the nonwovens industry isn't going to get together again for three years. There are a host of smaller events - ideal for smaller nonwovens companies - that will keep you networked and informed. Here's just a sampling.
- For three days this month (April 26-28) small business executives can rub elbows with the men and women who run INDA and the largest nonwovens companies in the country during the INDA Annual Meeting (for INDA members only) at the Ritz-Carlton Amelia Island, in Florida. www.inda.org.
- Got some new people who need to learn the basics? Then send them to the INDA Nonwovens Training Courses. Three of them are scheduled: April 18-20 in Atlanta and then July 10-12 and October 9-11 in Raleigh, NC. www.inda.org.
- The next major gathering of the industry will be for the Second Annual International Nonwovens Technical Conference (INTC), September 5-7 in Baltimore. This is THE technical conference or the year and brings together both INDA and TAPPI members. www.inda.org.
- If you are involved in the filtration business at all, then Filtration 2001, December 4-6 at Navy Pier in Chicago, is the place to be. Everyone who is everyone will be at this largest gathering of the filtration business in the world. www.inda.org.
- If you want to head to Europe to see what the industry is up to across the pond, there's no better place to be than in Copenhagen, Denmark for the annual EDANA International Nonwovens Symposium, June 7-8. A good-sized U.S. contingent usually makes the trip. www.edana.org.
- Even further from home, but important if you are looking to do business in Asia, is the Shanghai International Nonwovens Conference, September 24-26 in Hong Kong. www.mfi.com
GETTING AHEAD IN A SLOWING ECONOMY
There's no getting around it now - the economy is slowing down. So how does a small nonwovens business cope? By listening to the advice of author Rhonda Abrams (www.rhondaonline.com), who points out that in a slowing economy the number of new businesses formed actually increases. Here are some tips (with some nonwovens modifications) on how to get ahead in a slowing economy.
- Increase your available credit now. If you have good credit and are disciplined about using it, increase or establish credit lines at banks, ask for higher limits on credit cards, or apply for additional cards. That way you will have the resources for that new production line when a new customer is just begging for capacity.
- Reduce debt. Just because you have a lot of credit doesn't mean you should use it. If you now have decent cash flow and income, use them to reduce existing debt rather than increasing expenditures.
- Look for alternatives to permanent hiring. Use temps in your office and consultants when you're starting up a new line instead of taking on the burden of new hires. Or authorize overtime to existing workers.
- Lock in longer-term contracts with customers. Look for ways to increase your predictable income base by entering into ongoing contracts with good customers. Be willing to make concessions on price in return for longer-term income security.
- Avoid long-term contracts as a customer yourself. This is the flip side of the previous advice, but use whichever works out best for your situation.
- Maintain your marketing budget. In a downturn, the first thing many companies cut is marketing. On the contrary, you should be attending more shows and spreading the word either through "buzz" (see above) or advertising. Let your competitors cut back. Studies indicate that companies that maintain marketing budgets during leaner times actually increase their market share.
- Reduce "discretionary spending" and start saving. Now might not be the best time to remodel the office.
- Diversify your customer base. Nonwovens is a great place to be if you are looking to diversify. Long-life, short-life, consumer or industrial ... there are great opportunities to have a presence in markets that are affected differently by the economy.
- Get over it. If you've only been in business a short while, you may think the last few years were "normal." They weren't.
ARE YOU SELLING ANYTHING ON LINE?
To put the Internet in perspective for small businesses, a recent survey found that fully one-third of small businesses do not, and have no plans to, sell their products or services online. Manufacturing industries such as nonwovens are even less inclined to go online. Khera Communications, publisher of the www.morebusiness.com small-business portal, also reports that about 29% of businesses polled plan to set up an online storefront in 2001.
DO YOU HAVE A STORY TO TELL? SO TELL US.
What do Mogul Nonwovens, The Reynolds Company, Unimin and Ilapak have in common? Simple. They are among the many companies that have been profiled in the INDA Small Business e-Report each month as Small Companies That Are Doing It Big. (Mogul even went on to receive an IDEA 01 Entrepreneur Achievement Award.) Do you fit this definition? If so, contact us at 201-612-6601 or mjacobsen@inda.org and let us know what makes you so special. Maybe we'll then single you out for recognition as a SCDIB. Remember, much of the advice we provide in this space tells small nonwovens companies to be proactive, to reach out and grab a marketing opportunity to create some buzz. Here's your chance.
YOU HAVE PERMISSION TO STOP
It has been quite a hectic time in nonwovens the past few months, and even more so for small businesses who depend on a few key individuals for their very existence. But we found an interesting article in Forbes Small Business (April 2001 issue) titled "Preserving My Biggest Asset ... Succeeding Without Burning Out." Here's an excerpt that falls under the heading "Giving yourself permission to stop:"
"I used to think that succeeding in business was a never-ending sprint," writes the author, Angelo Gagaza. "In truth, it's a marathon that requires pacing and patience. By being a little selfish ... by reserving Friday afternoons for my self to walk aimlessly through neighborhoods I've rarely visited ... I have found stamina I didn't know I had. That has enabled me to safeguard my company's most irreplaceable asset: me."
Think about it.
THAT'S ALL, FOLKS
Take a deep breath and get ready to create some buzz in the world of nonwovens. You'd be surprised how the industry will react. We'll see you next on May 15 after we take some time for ourselves. In the meantime, we would love to hear from you, whether you have a thought you want to share with the hundreds of INDA members reading this newsletter, or if you want to tell others how you are a small company existing in a big world
Just email us at mjacobsen@inda.org and we'll pass it along.
See you next time. Enjoy.
Michael Jacobsen
Editor
INDA Small Business e-Report
If you would like to have your name removed from this e-mail list please respond to Ann Pleasants at apleasants@inda.org. Thanks.
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