EssentiaLink Reveals Secret for Surviving in a Down Economy

Westminster, CO, February 13, 2009 --(PR.com)-- Bill Douglas started EssentiaLink at a time when dotcom businesses were dropping like flies. He was not discouraged though. Mr. Douglas knew EssentiaLink was the right business at the right time. 10 years and 13 growth awards later, the company is still going strong and is well positioned to survive this current economic storm.

Acording to Mr. Douglas, "having the right idea at the right time will get a company started, but if you don’t pay attention to some critical financial data the dream will die. Profit is the primary nutrient to keep a business strong and healthy. But, cash flow is oxygen; no business can survive long without it.”

Cash flow began to strangle EssentiaLink. Customers were signing on and buying more but credit limits with suppliers quickly fell short. To further exacerbate the problem, some large customers were stretching payments out well beyond 45 days. Suppliers, having more at risk, were threatening to cut off supplies if not paid in 30 days. Oxygen was running out.

Something had to be done quickly. After a series of meetings with the entire staff a plan emerged that would quickly improve the company’s cash flow. The cornerstone of the plan was to convert over ½ of EssentiaLink’s Colorado employees into remote workers. This bold plan enabled them to cut their office expenses by 75%.

Next the company had to tackle CAPEX. EssentiaLink had a computer room filled with underutilized equipment, loaded with software that was not being fully utilized. Further, all this equipment and software needed considerable labor to maintain the endless patches, software upgrades, and security measures. Mr. Douglas decided to take his own advice. “For years” he said, “we have been helping our customers reduce their CAPEX and improve cash flow by providing comprehensive managed services for their Information Technology. We looked at our situation and realized we could greatly reduce our costs by strategically outsourcing to service partners.”

EssentiaLink took these steps in early 2008. Had they not done so, surviving the current credit crisis could have been extremely difficult, if not impossible. Mr. Douglas feels that because of these and other steps they have taken, the future looks bright for EssentiaLink.

EssentiaLink got its start by providing customers an outsource method for the acquisition of indirect consumable goods without the high cost or long-term commitment of vendor managed inventory or 3rd party procurement. Their approach was so unique, the process was awarded a patent in 2007. Additionally, to enhance strategic benefits for their customers, EssentiaLink soon added their MaintenanceFreeIT suite of managed services.

Business Process Outsourcing (BPO) is a proven strategy for leaders to keep their businesses focused on core competencies. For EssentiaLink, it has been particularly good. As a BPO provider, their market is growing fast. And, as a consumer of BPO services, EssentiaLink has converted 90% of their CAPEX into variable OPEX that easily adjusts with current market conditions.

“No doubt”, Mr. Douglas says, “there will be tough times and other challenges to face but for most companies, transforming CAPEX into variable OPEX is a sure way improve cash flow and build a strong financial foundation.

###