How to Successfully Navigate Your Business through an Economic Downturn

by: Terry H Hill

An economic downturn is a phase of the business cycle in which the economy as a whole is in decline.This phase basically marks the end of the period of growth in the business cycle. Economic downturns are characterized by decreased levels of consumer purchases (especially of durable goods) and, subsequently, reduced levels of production by businesses.

While economic downturns are admittedly difficult, and are formidable obstacles to small businesses that are trying to survive and grow, an economic downturn can open up opportunities. A well-managed company can realize the opportunity to gain market share by taking customers away from their competitors. Resourceful entrepreneurs capture the available opportunities, from an economic downturn, by developing alternate methods of doing business that were never implemented during a prior growth period.

The challenge of successfully navigating your business through an economic downturn lies in the realignment of your business with current economic realities. Specifically, you, as the business owner, need to renew a focus on your core clients/customers, reduce your operating expenses, conserve cash, and manage more proactively, rather than reactively, is paramount.

Here are best practices that will help you to successfully navigate your business through an economic downturn:

Goals:

The primary goal of any business owner is to survive the current economic downturn and to develop a leaner, more cost-effective and more efficient operation. The secondary goal is to grow the business even during this current economic downturn.

Objectives:

• Conserve cash.

• Protect assets.

• Reduce costs.

• Improve efficiencies.

• Grow customer base.

Required Action:

• Do not panic… History shows that economic downturns do not last forever. Remain calm and act in a rational manner as you refocus your attention on resizing your company to the current economic conditions.

• Focus on what YOU can control… Don’t let the media's rhetoric concerning recessions and economic slowdown deter you from achieving business success. It´s a trap! Why? Because the condition of the economy is beyond your control. Surviving economic downturns requires a focus on what you can control, i.e. your relevant business activities.

• Communicate, communicate, and communicate! Beware of the pitfall of trying to do too much on your own. It is a difficult task indeed to survive and to grow your business solely with your own efforts. Solicit ideas and seek the help of other people (your employees, suppliers, lenders, customers, and advisors). Communicate honestly and consistently. Effective two-way communication is the key.

• Negotiate, negotiate, and negotiate! The value of a strong negotiation skill set cannot be overstated. Negotiating better deals and contracts is an absolute must for realigning and resizing your company to the current economic conditions. The key to success is not only knowing how to develop a win-win approach in negotiations with all parties, but also keeping in mind the fact that you want a favorable outcome for yourself too.

Recommended Best Practice Activities:

The Nuts and Bolts… The following list of recommended best practice activities is critical for your business' survival and for its growth during an economic downturn. The actual financial health of your particular business, at the outset of the economic downturn, will dictate the priority and urgency of the implementation of the following best practice activities.

1. Diligently monitor your cash flow: Forecast your cash flow monthly to ensure that expenses and planned expenditures are in line with accounts receivable. Include cash flow statements into your monthly financial reporting. Project cash requirements three-to- six months in advance. The key is to know how to monitor, protect, control, and put cash to work.

2. Carefully convert your inventories: Convert excess, obsolete, and slow-moving inventory items into cash. Consider returning excess and slow-moving items back to the suppliers. Close-out or inventory reduction sales work well to resize your inventory. Also, consider narrowing your product offerings. Well-timed order placement helps to reduce excess inventory levels and occasional material shortages. The key is to reduce the amount of your inventory without losing sales.

3. Timely collection of your accounts receivable: This asset should be converted to cash as quickly as possible. Offer prompt payment discounts to encourage timely payments. Make changes in the terms of sale for slow paying customers (i.e. changing net 30 day terms to COD). Invoicing is an important part of your cash flow management. The first rule of invoicing is to do it as soon as possible after products are shipped and/or after services are delivered. Place an emphasis on reducing billing errors. Most customers delay payments because an invoice had errors, and therefore, will not pay until they receive a corrected copy. Email or fax your invoices to save on mailing time. Post the payments that you have received and make deposits more frequently. The key is to develop an efficient collection system that generates timely payments and one that gives you advance warning of problems.

4. Re-focus your attention on your existing clients/customers: Make customer satisfaction your priority. A regular review of your customers' buying history and frequency of purchases can reveal some interesting facts about your customers' buying habits. Consider signing long-term contracts with your core clients/customers which will add to your security. Offer a discount for upfront cash payments. The key is to do what it takes to keep your current customers loyal.

5. Re-negotiate with your suppliers, lenders, and landlord:

i) Suppliers: Always keep your negotiations on the level of need, saying that your company has reviewed its cost structure and has determined that it needs to lower supplier costs. . Tell the supplier that you value the relationship you have developed, but that you need to receive a cost reduction immediately. Ask your supplier for a lower material price, a longer payment cycle, and the elimination of finance charges. Also, see if you can buy material from them on a consignment basis. In return for their price concessions, be willing to agree to a long-term contract. Explore the idea of bartering as a form of payment.

ii) Lenders: Everything in business finance is negotiable and your relationship with a bank is no exception. The first step to successful renegotiations is to convince your lenders that you can ultimately pay off the renegotiated loan. You must point out to your lenders why it would be in their best interest to agree to a new arrangement. Showing them your business plan and your action plan that includes your cost-savings initiatives, along with "the how" and "the when" of the implementation of your plan is the best way to achieve this goal. Explain to them that you will need their cooperation to insure that you can survive, as well as, grow your business during the economic downturn. Negotiated items include: the rate of interest, the required security to cover the loan, and the beginning date for repayment. A beginning date for repayment could be immediate, within several months or as long as a year. The key is to realize that your lender will work with you, but that frequent and continual communications with them is critical.

iii) Landlord: Meet with your landlord. Explain your need to have them extend the term of your lease at a reduced cost. Make sure you have a clause in the lease agreement that entitles you to have the right to sublet any or all of the leased space.

6. Re-evaluate your staffing requirements: This is a very critical area. Salaries/wages are a major expense of doing business. Therefore, any reduction in the hours worked through work schedule changes, short-term layoffs or permanent layoffs has an immediate cost saving benefit. Most companies ramped up hiring new employees in the good times, only to find that they are currently overstaffed due to slow sales during the economic downturn. In terms of down-sizing your staff, be very careful not to reduce your staff to a level that forces you to skimp on customer service and quality. Consider the use of part-timers or the current trend of outsourcing certain functions to independent contractors.

7. Shop for better insurances rates: Get quotations from other insurance agents for comparable coverage to determine whether or not your present insurance carrier is competitive. Also, consider revising your coverage to reduce premium costs. The key is to have the right balance-to be adequately insured, but not under or over insured.

8. Re-evaluate your advertising: Contrary to the other cost-cutting initiatives, evaluate the possibility of increasing your advertising expenditures. This tactic realizes the advantage of the reduced "noise" and congestion (fewer advertisers) in the marketplace. The downturn period a great opportunity to increase brand awareness and create additional demand for your product/service offerings.

9. Seek the help of outside advisors: The use of an advisory board comprised of your CPA, attorney, and business consultant offers you objectivity and provides you with professional advice and guidance. Their collective experience in working with similar situations in past economic downturns is invaluable.

10. Review your other expenses: Target an across-the-board cost-cutting initiative of 10-15%. Attempt to eliminate unnecessary expenses. Tightening your belt in order to weather the downturn makes practical, financial sense.

Proactively managing your business through an economic downturn is an enormous challenge and is critical for your survival. However, through well-planned initiatives, an economic downturn can create tremendous opportunity for your company to gain greater market share. In order to take advantage of this growth opportunity, you must act quickly to implement the above best business practices to continue realigning and resizing your company to the current economic conditions.

Copyright © 2008 Terry H. Hill

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What Does RICH Mean To You?

by: Paul Mara

Have you ever been asked that question?

I was!

Back in 1979 while doing a “pressure cooker” course on selling with an insurance company!

I wondered how relevant that question was, considering my personal and financial situation at the time.

No wife!

No job!

I was a solo dad with three children, one of them a baby less than a year old.

“You must be kidding”, I thought to myself at the time!

What relevance can that have to me learning to sell insurance policies?

How naive I was!

The course that followed had an unbelievably positive and a life changing effect on me. Although it only took affect several years later. The seed had been sown!

You’re probably saying to yourself, “How can a course on selling life insurance have that much effect on anyone?”

Well that Insurance Company was the one created by W Clement Stone.

I found the course to be very challenging, because in New Zealand at that time we weren’t really aware of the “Hype” that Americans used to motivate their workers to perform at their optimum. It pleases me each time I think about it now, to know that I passed, top of the class and received a book as a reward, this book was already a best seller, but I’d never heard of it.

Success Through a Positive Mental Attitude, of which W Clement Stone was co-author with Napoleon Hill. They shared their secrets on becoming wealthy and having a healthy, productive lifestyle, utilising the power of a "positive mental attitude". Sadly my motivation and my persistence waned and I stopped selling insurance.

I kept all the information, studies and the book I had won.

The “BOOK” Success Through a Positive Mental Attitude, which I never opened or read for probably 3 years.

However I did continue two very positive things! I continued to read on a daily basis some of his quotes and I even put them on the wall. My two

favourites were;

“Success is achieved and maintained by those who try and keep trying” and

“Whatever the mind of man can conceive and believe, it can achieve”.

The second thing and the one which I believed the most important was “Goal Setting” I enjoyed the challenge and had learned enough during the course to

realise its long term value.

Life began to take several steps in the right direction not major ones, but positive ones.

Several important things happened in my life over the next 12 years.

Around 1981-2 I began reading, Through a Positive Mental Attitude,

I applied so many of their ideas and formulae, and by 1992 mine and my families life had completely turned around, this included a wonderful wife and two more children and a list of goals I had made in 1986 after father passed away, became a reality.

I had arrived finally, or so I thought, and was ready to respond to the question that still continued to bother me after all those years.

What Does RICH Mean To You?

I had some answers!

That’s what I believed anyway!

1 - " A consistent income created from hard work

2 - " A healthy family

3 - " A loving wife and loving children

4 - "A nice car

5 - " A great holidays

There are other things, but they are either directly or indirectly related to the above list.

Even now when I look at that list it seems to have “hit the nail on the head”.

Then within three years it all slowly began to fall apart, business wise, thankfully not family wise our “Polynesian Inheritance” is so strong, family always come first!

Where was I going wrong?

What was I doing wrong?

Whose fault was it?

Why now when we seemed so successful?

A myriad of questions passed through my mind, I began to blame myself, I was making wrong decisions.

I had begun a downward slide a personal one that took away my mental fortitude, my belief, my self-confidence, I lost motivation, the thing that really hurts me when I think back is that, “I didn’t really care anymore” I began to think that the world owed me, I was a good person so for that I should be rewarded. What a “Pity party”, darn pitiful is all I can say now!

After all these years I am finally getting back on track!

I realise that age and the new generation means I can never be what I was back then, why?

Well that’s the past and I now live for today!

Not tomorrow!

I have found a “Certain Way” that has been available to each and every one of us for more than ninety years.

Probably what W Clement Stone and Napoleon Hill and thousands of others used to become rich, but forgot to tell us some very vital points, whether they did it consciously or just took it for granted that we would figure it out, I am really not to sure.

Want to find out as I have???

The real meaning of what “RICH” is, go to my website “Right Now” and find out how you to can have a “RICH” balanced and fulfilled life with “Prosperous Equilibrium”.

My Very First Board of Directors Meeting...

by: Nick Siegel

I could make up a terrific story about this, but I won't lie - I had avoided (as in postponed, side-stepped, procrastinated) having a board of directors until now. Frankly, I had visions of having a group of old, cranky, humorless men telling me what to do.

Of course I was just being lazy, too. I would rather be out making products and building a business than sitting around trying to make sense out of Excel files, charts and graphs, and essentially being bored to death in the process.

Our company, however, has reached the point where "proper governance" is important...even necessary. The "let's do it because we all think it's a really good idea" mentality had to go. We really needed to be able to show that all of our shareholders were represented in our decision making - and represented fairly.

So I asked my business mentor and close friend, who knows and understands our industry very well, to be the first member of the board of directors. Now let's be clear - I didn't ask him because he's my "friend." That would have shown very poor judgment, and frankly, friends don't always make the best business advisors. I asked him because he's already the one person who advises me on all "board-type" matters, anyway!

So imagine this: I felt like a "big grown-up boy" in long pants, carrying my briefcase filled with notes, reports, Excel printouts, etc., to my first board of directors meeting on Friday, February 15, 2008, at 2 PM ET.

If you are picturing a large dark paneled room with a long table, think again. Outside our "boardroom" were chickens, squirrels, birds, and other creatures - large and small, wild and domesticated. Inside the "boardroom" (besides the board members) were a dog (a.k.a. The Wolf), two cats (a.k.a. Puffy and Fluffy), and five children. Yes, we were in my friend's home, gathered around his kitchen table.

Maybe someday we will meet in that dark-paneled room with a long table. But I don't care how big my business gets - I hope we can continue to meet with the same "family feeling." There was a certain calmness, almost a serenity, about the entire meeting. There was nothing stuffy or even formal, although we did follow the rules of a proper meeting.

So my first board of directors meeting started with a brief lesson about what exactly happens at board meetings! My friend and mentor gave a simple, five-minute explanation of what board meetings were all about...and in the process, he completely changed my preconceived ideas. That's what I really want to share today.

What Do You Think Is Supposed To Happen At Board Meetings? - Company planning strategy?

- Hiring strategy?

- Financial planning?

No, no, and no. Those are the things that I THOUGHT were supposed to happen at a board meeting, but was I ever wrong. The things listed above are the territory covered by company management...not the board of directors.

The board of directors has exactly one responsibility, and that responsibility is...

GOVERNANCE

Just like a sovereign nation, each company has what they call "articles of incorporation." These "articles" are actually the laws - or rules - that the management of the company must abide by.

So the whole purpose of the board of directors is just to make sure those laws are followed. The point is for the board to make sure the decisions that are made in the day-to-day operation of the company are really in the best financial interest of the shareholders.

Of course, not ALL of the decisions that are made by management are the right decisions - anyone can be wrong, it's inevitable. But the decisions have to be made within the laws laid down in the articles of incorporation. They can't be sneaky decisions, they can't have malicious undertones, and they can't be decisions that line the pockets of management at the expense of shareholders.

Here is just one example of the type of responsibility shouldered by the board of directors:

The board does not decide who is hired to fill a position. The board simply "empowers the management" to pursue that hire. It's still management's job to make the final decision about who is hired to fill the position. The board only acknowledges that they understand why the position has been created and filled.

The board of directors GOVERNS. It does not strategize.

So in the end, I didn't need all those spreadsheet printouts and detailed notes. What I did need was exactly what I got - a lesson in how to think about shareholder value, while simultaneously running the company.

Record Your Products: Reap The Rewards of Recording And Getting Your Product Done Faster And Easier.

 by: Patsy Bellah

Some of you will remember when we had to type on typewriters. Some of you, present company included, may even remember when we had to type on “standard” or manual typewriters. For those who aren’t in the know, that’s a typewriter without electricity

Then we got electric typewriters. That was something new to learn, but all our work could be done faster, easier and with less mess.

Then came computers. There was more to learn but with this technology life was made even easier for secretaries, writers, or anyone having to convey information with the written word.

With each of these advances there were those who said they couldn’t do it. They didn’t like it, they didn’t like change. They could get along just fine, thank you very much, with a manual typewriter, or an electric one. They didn’t need computers. There was too much to learn. It was too different.

Don’t let that attitude keep you from learning the latest time saver for transferring words to paper and that is the digital recorder. As the manual typewriter has given way to more sophisticated electric typewriters, which have given way to the computer, so, too, has the digital recorder made it faster and easier to transfer the spoken word to the written word.

On the average a one-hour recording will yield about 20-30 typewritten pages. That means that with a one hour “conversation,” speaking your story or information into a recording device, then getting it transcribed, you can transfer your spoken word to a document in about 25% of the time it would take you to type it yourself.

It may take a bit of practice to learn to dictate into a recorder, but once you have, you will find that you can save yourself a ton of time. Statistics prove that the longer it takes to complete a project, the less likely it is that you will finish it. Embrace this new technology.

Here are some guidelines you should consider when purchasing a digital recorder:

1. You must be able to download your recording to your computer. Some of the less expensive recorders are not “downloadable.” You need to be able to transfer your recording through the Internet in order to send it to a transcription service or even if you want to transcribe it yourself.

2. Although most recorders come with internal microphones, it is best to have the capability to attach an external microphone. External microphones work better to record presentations or to record from a distance. Additionally, you can elect to use a lavaliere microphone for yourself and not be hampered with holding the recorder. Or, if you are recording more than one person, such as if you are interviewing someone, you can get an attachment which allows you to hook up two microphones.

3. The recorder should have at least four hours of available recording time using the high quality recording setting. You want to make sure the recorder has enough time to record a full presentation before having to be downloaded to the computer.

The capabilities of recorders change all the time, and in my recent research I found that the prices, like anything else, are coming down drastically and we are getting more and more recording time.

I checked out the Olympus recorder on the Internet and found a very good quality recorder for around $100.00. I also found that you could buy this at Best Buy in the Los Angeles area at the same price. Other locations such as Samy’s Cameras for those in the Los Angeles area, Circuit City, Radio Shack and Frys may also have them.

For those of you who live in the Los Angeles area, I found an Olympus and a Marantz at Samy’s Cameras which uses a flash card and can get you as much as 4G-8G of storage space. Both of these sell for just under $400.00. The Sony or the Edirol are also good recorders, and have similar capabilities and prices.

Buying a recorder is much like buying a blender or a computer. Although it’s wise to buy as much as your pocketbook allows, at the same time, you don’t need to buy more than you will use. Why spend the extra money.

A digital recorder is small and easy to use. On it you can record all of your information products, plus your presentations, blogs or articles.

Embrace this new technology. Using a digital recorder to record your information product, presentations or teleseminars, will allow you to finish your product in less than 25% of the time it would take you to type it yourself. If you get your audio transcribed, once you get it back, all you have to do is edit it and you can have your product completed in less than a week.

Internet And Business Online – The Act Of Interdependence

 by: Scott Lindsay

The best role of business online is that of interdependency. We’ve all heard the old saying, “No man is an island.” When it comes to online business this is especially true.

If a business owner who takes their business into the online world determines they will be self reliant and never accept the help of anyone then that individual will not be in business long enough to change their minds.

It is accepted fact that the greatest tool for long-term exposure to your website is through Search Engine Optimization (SEO). Without it potential customers can’t find you. It is unreasonable to expect that you can adequately develop a website without optimizing your website for the best possible search engine ranking.

Search engines also place a high value on sites that have links placed on existing sites. These ‘backlinks’ demonstrate to search engines that others trust your site. By placing your link on their website these other businesses indicate a trust and recommendation for your site.

In effect the two strategies listed above rely exclusively on what others can do for you when it comes to your online business.

Shirley Temple once proclaimed in her movie Rebecca of Sunnybrook Farm, “I’m very self-reliant.” American westerns are filled with lines dealing with pulling yourself up by your bootstraps and holding down the fort. Many of us have grown up to believe if we want something done right we have to do it ourselves.

This thinking is in opposition to the rules associated with an online business.

The online world can only exist because people share. Individuals share technology, but the also share links, reviews, blogs, forums and a wide range of other marketing strategies that find a commingling of interdependency.

In online business you are as dependent on others as they may be on you. Unlike the word ‘dependent’, the term interdependent indicates a mutual dependency. In other words you are depending on others to help provide links back to your site while they are equally dependent on you (or others) for the success of their business.

Have you really taken a proactive approach to networking? It’s possible you are reading this today and you’ve never considered asking someone else to place a link to your site on his or her online business site.

It can feel awkward depending on others to achieve online success especially if you’ve been lead to believe reliance on others is also a sign of imposing on their otherwise brilliant generosity.

I suppose it could be a deep-seated sense of pride that makes it hard to consider the need to ask others for help. However, the truth is depending on others is really what has made the Internet possible. The growth of this online world is comprised of a link of computers, networks and servers that are connected in a way that provides the maximum benefit for all.

Building an online business can feel a bit like trying to build a house of cards. Without the ability to rely on the other ‘cards’ around you it is virtually impossible to build.

Interdependence. This is the essence of online business.

Web Development And The Big Time Out

by: Scott Lindsay

One of the great debilitators in online business is simply the perceived (or real) lack of time. Business owners are used to moving forward. An online web presence can make them feel tied to an office chair learning skills they aren’t sure they want to know.

It’s not uncommon for those who deal in full time web design to have individuals contact them for a site design, but have absolutely no idea what they want. Furthermore when the designer questions them the response might be, “I don’t know, just make it look nice.”

Let’s not forget the core values or mission of the business. Many business owners have no idea how to answer those kinds of questions. They may stare blankly for a moment or two and there’s no more time for further deep thought so they go back to action – without answers.

In many cases it is possible to answer some of the questions needed, but it may require taking time away from a familiar setting. It may also require more time than you think you want to give.

If you can get to a place of concentrated contemplation you are likely to find yourself stripping ideas to their core to find out what your business is trying to accomplish and what your ultimate goals might be.

As with almost any project you can turn frustration around if you will just take the time to come to terms with your vision.

Sometimes we spend so much time ‘doing’ we never stop to ask the question, “Why?”

This process can be a bit like taking a bus that drives around the park. You keep looking at the flowers and the park bench and long to sit in the quiet shade of a tree and just absorb the calming atmosphere. You know they will have a positive effect on you, but for some reason you just can’t seem to find the energy to get off the bus.

It seems to me there are some sites that are misguided or rarely guided that could benefit from the process of self-evaluation. These sites may look nice, but there is a sense of disconnection that may not be easy to identify, but it’s fairly obvious to visitors.

Creative energy is at a minimum while business owners simply tackle what seem to be the most urgent details.

As more people gravitate to online business there needs to be a shift in the thinking of how one goes about doing business online. In many ways it can’t be approached in the same way a traditional business is developed, yet that is typically the way many new web commerce ventures choose to tackle the subject.

You may discover your business will be more successful if you take some time for rigorous reflection. The time set aside can be a bit like an architect that takes the time to develop plans for a new building. You wouldn’t expect the architect to simply tell a construction crew to, “Go out there and build – something.”

Work at ‘building’ your online business in a comprehensive way. Your effort can develop a firm foundation for long-term success.

Back to Back User Agents for Telecommunications

by: Danny Loeb

Today’s telecommunications networks are a delicate blend of clients and servers that together offer virtually endless possibilities when it comes to services and applications. For every new client developed, there seems to be a score more on the way — from mobile handsets, PDAs, terminals, telephones, video phones, IP set-top-boxes, and so on.

There are essentially two types of servers that connect between clients on large networks: Proxy servers and Back-to-Back User Agent (B2BUA) servers. The more prevalent Proxy servers feature predictable behavior — simply connecting between clients. Effectively, B2BUA servers are much stronger and intelligent entities that perform actions which Proxy servers cannot. Moreover, B2BUA servers provide a flexible solution for a wide range of applications and services and are becoming the primary engine for more and more SIP servers in NGN and IMS networks.

The difference between Proxy servers and B2BUA servers is sometimes not fully understood. In this article, we will explore what makes B2BUA servers such an appealing alternative to standard Proxy servers. Better understanding of B2BUA servers can help managers understand the value, and the tradeoffs, of choosing a B2BUA server, as well as the frameworks needed to develop a wide range of SIP applications and SIP services using it.

Figure 1 - Architectural difference between Proxy servers and B2BUA servers

B2BUA Server Defined
B2BUA servers are used to provide value added features for point-to-point calls and manage multi-point calls. The power behind a B2BUA server is derived mostly from the fact that it has a very generic definition, which gives it almost unlimited power. However, this same characteristic is the root of the controversy surrounding it.

IETF standard (RFC 3261) defines a back-to-back user agent as “a logical entity that receives a request and processes it as a user agent server (UAS). In order to determine how the request should be answered, it acts as a user agent client (UAC) and generates requests. Unlike a Proxy server, it maintains a dialogue state and must participate in all requests sent on the dialogues it has established.”

B2BUA servers have capabilities that far exceed those of other types of SIP servers, and answer the need for developing sophisticated value added SIP applications that cannot be implemented as Proxy applications.

Some of these capabilities, which are unique to B2BUA servers, are outlined below:

3rd Party Call Control (3PCC) Features
3rd Party Call Control (3PCC) is the ability of an entity (usually a controller) to set up and manage communication between two or more parties. 3PCC is often used for operator services and conferencing.

3PCC actions are important capabilities, exclusive to B2BUA servers since “passive” non call-stateful elements, such as Proxy servers, cannot initiate these types of activities. Some examples of 3PCC services are online billing, QoS, resource prioritization, call transfer, click-to-dial, mid-call announcement and more.

3PCC actions can be initiated automatically by B2BUA server applications, like disconnecting a call following credit expiration in an online-billing system. Or they can be initiated by remote administrative control (OSS), e.g. invite parties to a multi-point conferencing session.

Figure 2 - Schematic outline of B2BUA server offering 3PCC functionality

Inter-working Function (IWF) for Interoperability

SIP was designed as a highly flexible and extendible protocol. The very strength of this flexibility is also an inherent weakness, since the vast array of client types in the market still need to connect.

B2BUA Inter-working Functions (IWF) defines a wide range of powerful SIP servers that connect SIP clients that “speak” in different protocol dialects, or support different capabilities. This Inter-working function is very important in enabling connectivity between clients with different capabilities and/or protocol dialects. Or even between clients and networks – where the B2BUA server actually acts as an access device.

Examples of what IWF can do include:

• Connecting SIP clients to IMS networks by adding and removing IMS SIP protocol extensions (AKA P-Headers) that are essential for connecting to the IMS network
• Connecting clients with different Session Timers settings
• Connecting clients with different media capabilities and with distinct Session Description Protocol (SDP) messages by relaying between the two types of control sessions
• Connecting to different types of networks (e.g. IPv4, IPv6) and support for different transport types, such as TCP/UDP/SCTP/TLS

Figure 3 - Schematic outline of a B2BUA Inter-Working Function

Multi-point Call Management

B2BUA servers an also implement multi-point call scenarios where multiple CPE devices connect to the B2BUA, and the B2BUA provides services to all CPE.

Due to these unique capabilities, B2BUA servers are widely used in the communications industry. A few examples are listed below:

• Online-billing/prepaid functions
• Servers supporting Resource Prioritization (RP) and/or Quality of Service (QoS) features
• Multi Point Conferencing servers
• IVR servers
• PBX Applications and Softswitches
• Application Layer Gateways (ALG)
• FW/NAT Traversal applications
• Privacy servers
• 3rd-Party Call Control Applications (3PCC)
• Service Creation Environment (SCE) runtime engines
• Session Boarder Controller (SBC)
• IMS S-CSCF, P-CSCF, I-CSCF
• SIP Inter-work Function (IWF) Gateway
• Security Gateway (SEG)
• Voice Call Continuity (VCC) servers

In addition, B2BUA servers play an important role in emerging IMS networks. Recent releases of 3GPP IMS specifications (3GPP TS 24.229 V8.0.0) indicate that an increasing number of IMS network element servers, such as P-CSCF, IBCF,SBC etc., are B2BUA servers. The reason for this is that value added services are usually session stateful, and feature capabilities that go beyond basic call proxying. Applications written on top of B2BUA Application servers fulfill several roles, such as SIP User Agents, SIP Proxy servers and SIP Registrars.

B2BUA Server Challenges

B2BUA application developers face many challenges, such as achieving rapid time-to-market, conformance and interoperability, offering customization for proprietary services and support for High Availability (HA) and redundancy. A comprehensive B2BUA framework can help developers overcome these challenges.

A solid B2BUA framework should have modular application building block architecture for increased flexibility, abstraction and short delivery time. Traditional architecture, which features a single configurable state machine, is not flexible enough. Also, a B2BUA framework should facilitate developing B2BUA applications by flexibly linking “pluggable” high-level Modular Application Building Blocks (MABB). Developers should have the ability to combine these MABBs and they should be designed in a way that allows developers to further customize their behavior if needed. This type of architecture complies with contemporary Service Oriented Architecture (SOA) concepts, and is suitable for powering flexible business communication platforms. This modular architecture can save months of work. With a set of MABBs in hand, developing the application is a matter of combining existing MABBs to produce the required business logic. In addition, this architecture enhances efficiency; development of new MABBs can be done concurrently.

A B2BUA framework should facilitate developing applications that fully conform to standards and are interoperable; without restricting developers from customizing protocol behavior for special cases. Moreover, it should conform for non-standard implementations, as well as to mediate between two versions of the same standard. This type of framework allows developers to focus on their proprietary application with the confidence that their final application will be fully interoperable.

And finally, a B2BUA framework should provide the ability to configure, amend and replace application building blocks to create proprietary features. With this ability, developers can maximize existing code – significantly reducing development time, shortening testing cycles, and reducing overall time-to-market.

Figure 4 - Traditional architecture of a B2BUA framework

RADVISION’s B2BUA Application Framework http://www.radvision.com/Products/Developer/SIPServer delivers these capabilities and more. The B2BUA Application Framework module is a part of the RADVISION SIP server Platform, a software framework that offers the essential building blocks for the development of a wide variety of high performance SIP and IMS servers. The rich set of components and modules can be flexibly combined to match customers’ requirements for developing SIP servers that offer both standard and advanced SIP services.

Applications written on top of RADVISION’s B2BUA framework are developed by combining customizable modular application building blocks. This is effectively large chunks of functionality that can be strung together to form ad-hoc applications, enabling developers to focus on the high-level business logic and use building blocks that hide low-level details.

As one of the most popular IM applications, Yahoo! Messenger was the first large consumer player that adopted B2B UA. Yahoo! Messenger combined its backend scalable platform with RADVISION’s B2B UA to serve millions of monthly unique messaging users around the world. Yahoo selected RADVISION’s B2BUA due to its robust performance and scalability features.

Figure 5 - The architecture of RADVISION B2BUA Application Framework


RADVISION also offers automatic High Availability (HA) and Redundancy support. The B2BUA framework automatically replicates the run-time state of the different Services and B2BUA framework core. In the event of a server outage, a redundant server takes over seamlessly and provides uninterrupted service continuity.

B2BUA framework benefits in a nutshell

• Significantly reduces time to market developing proprietary B2B applications and services.
• Allows adding advanced services easily to retain competitive advantage and evolve to meet growing customer demands.
• Focuses on the business logic and hides low level operator communication intricacies.
• Delivers off-the-shelf conformance and interoperability.
• Enables rapid development of applications that can interoperate with different vendors.
• Enables adding high-availability features easily.