Archive for Small Business

If you are a small business owner facing a declining business,  there are many ways to turn it around and change the circumstances so they are in favor of your business.  The book “Corporate Recovery: Managing Companies in Distress”, but authors Slatter & Lovett, gives valuable advice on turning companies around.  Some of the steps they recommend for your small business are as follows:

1.  Get control of cash flow and short term financing with a plan for Crisis Stabilization.  Understand all of the resources you have at hand, including your small business loan and funding resources.

2.  Perform a thorough assessment and make sure your leadership team is the one that is going to get the job done for your small business.

3.  Keep the lines of communication open with stakeholders, and make sure you have their support.

4.  Focus existing resources – be willing to sell peripheral assets to generate cash.

5.  Make any structural changes needed, including laying off unneeded employees.

6.  Understand the reasons your small business got into trouble in the first place, and focus on changing those processes.  Figure out how to be efficient and lean.

7.  Restructure the business financially, if needed.  Only make commitments that you can meet.  Raise working capital, or find other sources of funding.

Cash management is also critical to turning around a failing business.  Don’t spend cash unless it leads to generating revenue directly.  Prioritize payments.  Develop plans so that suppliers who aren’t getting paid understand when they will receive payment.  Communicate constantly with your creditors.  Implement a cash-only basis with your customers.  Provide status and updates for everyone involved in your business process.

The stress on communication is critical; creditors know that if your small business ends up in bankruptcy, they will likely receive very little return on their invoice, so many will be willing to work with you AS LONG AS you keep the lines of communication open.

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Oct
18

How to Recession-Proof Your Business

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It is frightening to run a business during tough economical times. But there are ways to recession-proof your business no matter the size of your company. You could be a business with 3 employees or a large corporation with 1,000 employees. The tactics are the same. Here are some tips to ensure your business reaches the next level.

Continue Marketing Efforts

It does not matter if your business is slow; you need to continue with marketing efforts. Increase the marketing and advertising strategies if possible. Put more money into these departments, otherwise, your business could collapse. There are many examples of this in big industry. For instance, Jell-O, Doritos and Crisco cut advertising budgets significantly. The results, the sales dropped from 24-64%. Ouch! This could ruin a small business instantly. Alternatively, Jiff peanut butter increased their marketing and advertising budgets and the sales increased by 57%. Lesson learned is to avoid putting a halt on marketing and advertising techniques. You need to keep the business name, products and services in the public realm. If you do not, the results could be devastating.

Utilize Technology

There is more out there than just Facebook to achieve additional customers and maintain loyal ones. Be sure you are on top of the different online programs that create a big impact on business. Two of the top ones right now are Four Square and Yelp! Take advantage of the internet and social media networks available to you and your customers. It will help increase business without breaking your budget.

If your business is struggling with financial means, talk to an unsecured business loan or a small business loan expert today.

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Jul
30

The Secret to Small Business Success

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Starting a small business is easy, but transforming it into a success is difficult.  Only half of all businesses make it within the first five years.  It is tough.  So here I have devised the top ? tips regarding how to make sure your business flourishes.

Decide on Legal Configuration

Be knowledgeable regarding what type of business is suitable for your company and which one benefits you the most tax wise.  For there are different tax breaks when it comes to Limited Liability Companies (LLC) as compared to a sole proprietorship.  There are also legal specifications when it comes to trading stocks, personal liability protection, and protecting your personal assets from being put at-risk.  Furthermore, find out what state fees are involved in practicing your business.  If you learn about these factors from the beginning of your business, you will avoid trouble later on ensuring lasting power in your industry.

Investigate Locations

Find out what is required to run your type of business in the location chosen.  Are there city permits needed?  Are the customers near your location?  Do zoning laws come into play?  Think about these aspects prior to opening up business doors.

Prepare Financing

When running a business the unexpected occurs.  You need to financially prepare for these “uh-oh” moments.  What if a necessary piece of equipment breaks down and you need to buy one immediately to continue business?  Or what if your normal vendor runs out of product, and you have to switch gears paying more to buy from someone new?  You need to be ready to financially handle these situations.  Keep money stored and available for when emergency happens.  You do not want to be caught into a bind.

These three tips will keep you around a longtime.  To find out more about how to fund your business, talk to a small business loan or a merchant cash advance expert today.

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