Small Business

How to Beat the Recession: David Cynamon

Tried and true strategies from entrepreneurs who've been there, fought back and won

Written by Chris Atchison and Susanne Ruder

DAVID CYNAMON

Current executive chairman of Toronto-based water-treatment chemical-maker K2 Pure Solutions; former head of computer-connectivity manufacturer NHC Communications

BEAT THE 1990-91 RECESSION

GET AGGRESSIVE TO FIND ALTERNATIVE FORMS OF FINANCING

“High-tech is a tough place to get financing because you’re never satisfied with the amount of capital you can secure; but when you’re going through a bad period, the problem is multiplied because banks aren’t willing to hand out money. In bad times, none of your financing is through debt, so you have to be much more creative in finding equity financing.

“Our solution was to go out and tell our story better. We had to knock on more doors, we had to find more synergistic potential equity players. We really just focused on spending much more energy on it because you just don’t want to be underfinanced at any time—let alone in a bad marketplace.

“The consistent message that I repeat to myself or to any of my peers who want to listen is this: whether you’re a startup or an established company, if your core business is a great one, you’ll find financing—even in a recession. All bad economies do is clean out bad ideas and bad businesses; the strongest will always survive.”

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Originally appeared on PROFITguide.com
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