THE KIPLINGER WASHINGTON LETTER

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP90-00845R000100600003-8
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 4
• Document Creation Date: December 22, 2016
• Document Release Date: June 10, 2010
• Sequence Number: 3
• Publication Date: September 7, 1973
• Content Type: OPEN SOURCE

Sanitized Copy Approved for Release 2010/06/11 :CIA-RDP90-008458000100600003-8
T , ;~1i iINGE2 ~`JASHINGT~ON L~,TT~R
Cireul;rted xee!dy to business clients since 191.1-Vnl. 50, No. J6
TEIE ltii'LINGLR~VASI4[NGTON EDITORS
1729 }} St., N.~V., Wasi(ington, D.C. 20006 1'cl :202-298-6400
Cable AJJress: Kiplinger Wnshing(on D C
Dear Sir:
STAT
Washington, Sept. 7, 1973.
Toa~'~ to m~ke business decisions these days, no doubt about it.
The toughest since jJ1J II in the eyes of many businessmen we contacted,
Just finished a fresh round of checking the mood in all areas
and really got an earful..?boy, such taidesprPad confusion & frustration.
Hoca to cope ~oith ALL the things that seem to be going wrong...
that's the almost unanimous question. Examples: Shifting govt policy
on wages and prices. InLlation. Short supplies oL- many basic items.
Soaring interest rates. Skyrocketing prices. Fuel crisis. Watergate.
World monetary chaos. Etc., etc. Small wonder businessmen are edgy.
In our calls around, we picked uo some ideas that may help you
plan and budget for next year...things that other businesses are doing.
First kee in mind that business is STRONG and will continue so
through this year at least.' Some slowing will become visible next year
as we've said, but still growth. And remember that many of the problems
ste.-n from the current stage of the boom,~but of course by no means all.
Then, ou can assume these other things for planning purposes:
tv'1~Ye price controls will stay on in some form for much of 1974.
Tales are not likely to be raised. Wages...about 7?/ nigher..
liusir.ess spendin? will stay high. Consumer spendinh will spurt
in the spring of the year...record tax refunds will be pouring out.
i~ow some thins to do in anticipation of changes next year:
iiu~ld up your cash reserve..."liquidity." One of the first steps
many co?panies are taking in anticipation oL- some softening of business.
More flexibility in case of emergency or sudden new business opportunity.
Get late bill Payers to cough up faster. Give discounts to fast payers.
r ~~-+tories more careruliy. Don't keep too much o.1 lland??-
~` ~tc~1 imp
or too much uwney tied up. inventory building generally isn't increasing
as fast as in earlier booms- Shows careful approach the bigs are using.
And do keep closer tab on sales as bellwether...plus inventory check.
Co easy on contracts. Don't promise more than you can deliver
at prices you set. Don't agree to costs you may not get back in prippny~
Particularly important in lines that depend on materials in short su 1
Loolc extra hard at your costs_...booming business often adds fat,
~ohich eats up profits at other times. Best to analyze your overhead...
cull inefficient equipment, outmoded facilities. Tighten up, generally.
Esoeci~lly costs caused by shortages. Often can't control them.
delays in delivery may make you pay more overtime. Or...
For instance,
maybe you can modify a product or service to cut cost. A current trend.
And sharpen the sales s_taff...selling may be harder next year.
About prices...you may be forced to raise them no matter what.
Other companies are about to charge more to cover their rising costs.
Sanitized Copy Approved for Release 2010/06/11 :CIA-RDP90-008458000100600003-8
 Sanitized Copy Approved for Release 2010/06/11 :CIA-RDP90-008458000100600003-8
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