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Denver businesses get, give helping hand

Alternative Board offers solutions to fiscal doldrums

By Melanie Asmar, Special to the Rocky

Published November 4, 2008 at 12:05 a.m.

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Tom McNamara, president of Foam Fabricators, sits amid stacks of foam Tuesday.

Photo by Ken Papaleo / The Rocky

Tom McNamara, president of Foam Fabricators, sits amid stacks of foam Tuesday.

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The foam business isn't booming these days.

Like many small-business owners, Tom McNamara of Foam Fabricators Inc. on East 39th Avenue is facing negative numbers: Profits are down 15 percent this year, he said.

But McNamara isn't despairing as much as he might. He's one of 146 Denver-area members of the Alternative Board, a business-to-business network that's part sounding board, part strategist and part support group.

His fellow board members have given him ideas on how to improve his business in tough times, including automating some of his processes, beefing up his Web site and marketing his custom foam products more aggressively.

"There's a lot of different ways to skin the cat," McNamara said, "and the more people you have looking at it, it's going to bring more ideas."

The Alternative Board is an international organization headquartered in Denver. For a monthly fee of $450 to $575, business owners can join a board with up to 10 other owners of noncompeting businesses.

The boards meet once a month to discuss challenges and brainstorm solutions. Members also meet one-on-one with a business counselor for personalized advice.

Organization President Jason Zickerman said the boards are even more valuable in today's economy. "This is no time to be alone," he said.

Heather Mourer said her business "wouldn't be here" if it weren't for her board. Mourer owns One Home, a high-end furniture store in Cherry Creek. Her sales are down 10 percent this year, partly because of the housing crisis.

Mourer said her board helped her get a small-business loan and figure out her finances, things she wasn't taught in design school. In turn, she's used her knack for aesthetics to help other business owners with advertising.

She said she's also leaned on her board for emotional support.

"I feel like I can say pretty much anything to the whole group," Mourer said.

"You can't say just anything to your employees because you don't want to freak them out. Or your husband - you don't want to freak him out."

Susan LeTerneau, a board facilitator and one-on-one counselor, said members' concerns have changed recently. They want advice about which financial indicators to watch and tips on how to cut costs, negotiate with vendors and keep employees motivated despite grim forecasts, she said.

Foremost, they want a strategy that keeps them on top. "If there are other people going out of business, you want to be able to pick that up," she said.

Dealing with tough times

With the holiday season approaching, many businesses - especially retailers - are looking for ways to stay in the black. Here are some tips from Alternative Board facilitator Susan LeTerneau and Chief Innovative Officer David Halpern.

* Reduce your inventory to a safe level. If you expect sales to be down 10 percent, cut 10 percent of your inventory.

* Mark down slow-moving items before the holidays.

* Promote hot-ticket items to attract customers.

* Advertise your layaway policies.

* Make sure you're collecting money that you're owed.

* On the flip side, negotiate a payment plan with your vendors that allows you additional time to pay them if necessary.