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YOURSALARY........1DISCOUNTREQUESTS5AVOIDINGDELAYS...8ADVICE............10BEINGPREPAREDFORWHATEVERHAPPENSINTHISISSUECreativeBusinessDontbemisledbycur-rentactivity.Keepaneyeonleadingindicators.Workatdifferentiatingyourself.Continuetomarket.Watchyourincomecostratio.Focusonwhatsprof-itable.Rememberitsacycle.CreativeBusinessCreativeBusinessispublishedninetimesyearlysixregularbi-monthlyandthreespecialreportissues.Editorialcontentisdirect-edtocompanyprincipalsandself-employedcreativeindividualsworkingwithinthecommunica-tionsbusiness.EditorCameronS.Foote.CirculationLeeStraube.PublisherDavidLizotte.DesignDavidLizotte.IllustrationMarkBellerose.Editorialofce101TremontStreetSuite300BostonMA02108.Telephone1-617-451-0041.Fax1-617-338-6570.e-mailmailcreativebusiness.com.Websitewww.creativebusiness.com.Newprintsubscriptions159renewals149.Canadianandoverseasprintsubscriptions169U.S.fundsrenewals159.NewelectronicsubscriptionsPDFformat149renewals139sentanywhereintheworldbye-mail.ISSN1073-8444.MarchApril2008Volume20Number3.Copyright2008StaysailEnterprisesLimited.Allrightsreserved.Reproductioninwholeorinpartisprohibitedwithoutwrittenauthorization.PrintedinUSAonrecycledpaperusingsoy-basedinks.CreativeBusinessisintendedtoprovidetimelyandaccurateinformationonsubjectscovered.Thepublishereditorandstaffarenotengagedinrenderinglegalaccountingorotherprofes-sionalservicesandassumenoliabilityforerrorsorthewaysinwhichinformationisused.IftheresonewordthatwoulddescribeIdlikeittoberelevance.Wetryhardtomakesureeveryissuehasonlymaterialthatisuniquelyrelevanttorun-ningasmallcreativeorga-nizationmoresuccessfully.Nofeel-goodarticles.Notrendyfluff.Usuallythisinvolveseveryday-usefulinforma-tionsuchaswhatappearsonthepagesfollowing.Occasionallyitalsoinvolvesalittleexhorta-tion.Thatsmypurposehere.UnlessyouvebeenoffonalongsojourninAntarcticayouveheardmorethanalittleconcernvoicedaboutthestateoftheeconomy.InothercountriesaswellastheUnitedStatestoo.Ifyouhaveanyhistoryinourbusinessyoualsoknowthatwhentheecon-economicdownturnsbeforeIfeelanobligationtoadviseyoutopreparenowbeforeitmightbenecessary.Itcouldbeshort-lived.Soforthepre-sentputasideanygrowthambitionsandbecontenttolivewithtodaysstaffandfacilitiesuntiltherearefeweruncertainties.Thisisnotthetimetomakelong-termcommitments.Specificallyyourfirmssalesfutureworkloaditsprojectpipelinefutureincomeanditsbillableefficiencyfutureprofit.Whencom-paredwithpreviousdatatheywilltellyouwhattoexpectlongbeforeitactu-allyhappens.Timesofreducedbusinessactivityaretimesofgreatercompetition.Themoreafirmisabletodis-tinguishitselffromcom-petitorsthefewerprojectsitstandstolose.Evenmoreimportantthelesspricepressureanderosionofitsmargins.Spendingonmarketingisdiscretionarysoitseasytocutbackwhenincomefalls.Butthisisusuallyshortsighted.Marketingismosteffectiveattheverytimewhensupplycom-petitorsoutpacedemandprojects.Firmsmostlike-lytocomeoutofabusi-nessdownturningoodshapearethosethatcon-tinuetomaintaintheirmarketplacevisibility.Whenbusinessgoessouthincomedropsbutcostsdont.Andwhentheresalsoinflationafirmscostsrisebutitspricesoftenstaythesame.Keepingtheincomecostratiostablerequirescut-tingcostsasincomedropsandraisingpricestomatchinflationaryincreases.Analyzewhatsbeenmostprofitableinthepastthengoaftermoreofthesame.Forgettemporarilyeverythingelseparticularlyprojectsandclientspursuedmoreoutofprestigeandegothanpracticality.Indown-timestheprioritymustbeonwhatbestpaysthebills.Soonerorlaterbusinessconditionswillreturntowheretheyoncewere.Meanwhileyoullhavetoconductyouraffairsmorecarefully.Andstandpre-paredtodowhateversnecessarytomaintainvia-bility.Whatyoulearnintheprocessthoughwillmakeyourfirmstrongerandpoisedforevengreatersuccessinthefuture.Finallyallowmetomakeanadmissionthisbitofadviceispartiallypromptedbyselfinterest.Thesuccessofisdependentonyoursuccess.Iwantyoutobeprosperousenoughinthefuturethatyoucanstillaffordtobeasub-scriber.EDITORSCOMMENTSomycatchesacoldcre-ativefirmscancomedownwithpneumonia.Fortunatelyatthispointwerestillatthesnifflestage.Thingsmightgetworse.Ortheymightnot.Regardlessthoughsoonerorlaterbusinessconditionsaregoingtodeteriorate.Itisinevitable.Assomeonewhohasweatheredseveral