SMALL COMPANIES ARE ELIGIBLE FOR INDA CONSUMER AWARDS
Has your company - or one of your customers - introduced a consumer product that utilizes nonwoven fabrics or technology in the past year? Do you think it is worthy of recognition? If so, you should be a part of the inaugural Visionary 2002 Awards sponsored by INDA in conjunction with the Vision 2002 Consumer Products Conference, January 21-23, 2002 in New Orleans, LA.

The Visionary 2002 Awards are designed to recognize the consumer products companies that are utilizing nonwoven fabrics in their end products. To be eligible a consumer product must have been introduced to the market in 2000-2001 and the finished product must incorporate a nonwoven fabric as a key component. The product categories include, but are not limited to, baby diapers, adult incontinence and feminine hygiene products, wipes and filters for household and automotive applications.

Nominations are now being accepted on these new products. A list of nominations from the industry will be presented to INDA's Technical Advisory Board next month. TAB will then select five finalists and invite each to attend the Vision 2002 Consumer Products Conference in January to make a 5-10 minute presentation on the product. The attendees at the Conference will then have the opportunity to vote for their choice of the best new consumer product of the year and the Visionary 2002 Award will be presented during the Conference.

"The top men and women from both the large and small companies that serve the consumer products industry, as well as from the companies that make these products, will all be at Vision 2002. We feel it is an ideal venue to not only learn about these products but to also recognize their contributions to the nonwovens industry," said Ted Wirtz, INDA president, in announcing the awards.

To nominate a consumer end product that fits the above criteria please forward your comments, including a contact person at the nominated company, to Michael Jacobsen, Visionary Awards project coordinator, at mjacobsen@inda.org, or mail to 22 Paterson Avenue, Midland Park, NJ 07432; (201)612-6601. Companies may nominate themselves. See www.inda.org for more information.

By the way, readers of this INDA Small Business e-Report are the first to know about this awards program, so act right away to stay ahead of the pack. Deadline for nominations is September 30.

FREIGHT REGULATIONS MAY IMPACT SMALL NONWOVENS COMPANIES
Earlier this year INDA was contacted by the National Classification Committee (NCC) of the National Motor Freight Traffic Association with regard to an NCC review of disposable diapers, diaper liners and bedding pads. According to NCC staff, data had been submitted by one or more contract trucking firms suggesting that the current classification place on these products under the National Motor Freight Classification system was out of date.

Based on an August 6 vote taken in San Diego by the Panel, the NCC will consider an increase in permissible trucking tariffs for disposable diapers, diaper liners, and bedding pads when it meets November 6. Fortunately, however, based on data developed by INDA, the NCC will be considering a rate that is significantly lower than originally proposed. But INDA believes that that rate is still unjustifiably high and will argue against it in November.

Without getting into too many details, NCC membership had submitted data suggesting that the classification assigned to disposable diapers, diaper liners, and bedding pads shipped in less-than-truckload (LTL) amounts by contract trucking firms was much lower than it should be and the shipping characteristics of these products were so diverse that application of a "full scale" system should be considered. Since there is a direct relationship between NCC classifications and allowable tariffs (i.e., the higher the classification, the higher the allowable tariff), a change would result in a 75% increase in allowable tariffs. Moreover, adoption of a full-scale system would require that the density of each future shipment be calculated and used to determine allowable tariffs. This is a time-consuming process that generates large amounts of paperwork and results in significant record keeping requirements. As such, it is generally shunned by smaller companies who rely on contract trucking firms to transport their products.

After polling our members, INDA was able to inform the NCC that their information appears to be inaccurate. Data from the nonwovens industry, in fact, indicated there is no need for applying a full scale density to disposable diapers, diaper liners and bedding pads and if any change in the current classification is warranted it should be relatively minor. Contact Peter Mayberry in INDA's Washington, D.C. office at pmayberry@inda.org; 703-538-8804 for more information.

NEVADA TOPS FOR SMALL BUSINESSES; RHODE ISLAND ON BOTTOM
Maybe its all the free drinks in the casinos, but surprisingly Nevada came out on top in a recent report on the best and worst places for small businesses to operate by the non-profit Small Business Survival Committee (SBSC). Rounding out the top five: South Dakota, Washington, Wyoming and Florida. Unfortunately, none of these states as ranked by SBSC based on tax rates, cost of electricity, minimum wage and 14 other factors are real hotbeds of the nonwovens industry. Fortunately, though, neither is the worst: Rhode Island.

CONQUERING A CASH CRUNCH: A PRIMER FOR SMALL BUSINESSES
Let's face it, every once in a while even Bill Gates is a little short on cash. The trick is how you deal with it. While Bill might just sell a few shares of stock, for you the alternative is a little different. Here are six steps to conquering the cash crunch in your company ... and to avoiding the situation in the future.

1. Get involved. Personally monitor all cash disbursements. In a survival situation, cash management should not be delegated. Pay your essential bills, but dispense cash sparingly.

2. Get real. List all your liabilities. When do you have to pay what? Prioritize. Then list your Accounts Receivable and make a payment plan.

3. Get on the phone. Don't hide from your creditors. Call them and explain. On the flip side, maybe call some of your late pays and see if the check really is in the mail.

4. Get busy. Now is the time to liquidate superfluous inventory, fixtures, etc. Look at everything - even that old card line in the back room. Just make sure the industry knows this is no Going Out Of Business sale.

5. Get figurin'. Prepare a cash flow budget. This is your most important tool. Combined with the steps above, the cash flow budget (for the next two to three months, minimum) will help steer you out of trouble.

6. Get cutting. And slashing, and slicing, and dicing. This is the hardest step and requires that you remain both objective and honest at the same time. Analyze all the aspects of your business that allow you to access cash. Find areas that can be cut, whether it is salaries or perks. Measure your actions by what will allow you to survive the immediate situation against your ongoing needs once through the current crunch.

1. Sole proprietorship: Easy to start, you are indebted to no one and you can get out as easily as you got in. Trouble is, your personal liability is unlimited. That means your house, car and personal possessions are up for grabs if the business tanks.

2. Partnership: You have to be able to get along with, and trust, your partner. You two (or more) are your own bosses, but, again, you have unlimited liability if something goes wrong. Ask yourself: Do I trust my partner enough to put my house on the line? If yes, great. If no, consider something else.

3. Corporation: While this involves lawyers and a lot of paperwork and additional taxes, liability is limited and borrowing money is easier. Ownership is easily transferable, but keep an eye on all the tax ramifications.

4. Sub-Chapter S Corporation: Offers a bit of both worlds. The Feds allow you to get the limited liability of a corporation with the tax benefits of a less formal organization.

See you next time. Enjoy.

Michael Jacobsen
Editor
INDA Small Business e-Report