No matter type of business you operate you've got to know how to keep your business alive during economic recessions. Anytime the cash flow in a business, large or small, starts to tighten up, the money management of that business has to be run as a "tight ship."
Pause Before Paying
Some of the things you can and should do include protecting yourself from impulse expenditures. We've all bought merchandise or services we really didn't need simply because we were in the mood, then we sort of "wake up" a couple of days later and find that we've committed hundreds of dollars of business funds for an item or service that's not essential to the success of our own business, when really pressing items had been waiting for those dollars.
Using Professionals
While you may think you cannot afford it, be sure that you don't "short-change" your self on professional services. This would apply especially during a time of emergency. Anytime you commit yourself and move ahead without completely investigating all the angles, and preparing yourself for all the contingencies that may arise, you're skating on thin ice. Regardless of the costs involved, it always pays off in the long run to seek out the advice of experienced professionals before embarking on a plan that could ruin you.
Your Financials
Your company's books should reflect your way of thinking, and whoever maintains them should generate information according to your policies. Thus, you should hire an outside accountant or accounting firm to figure your return on your investment, as well as the turnover on your accounts receivable and inventory. Such an audit or survey should focus in depth on any or every item within your financial statement that merits special attention. In this way, you'll probably uncover any potential financial problems before they become readily apparent, and certainly before they could get out of hand.
Advisory Boards
Many smaller companies set up advisory boards of outside professional people. These are sometimes known as Power Circles and once in place, the business always benefits, especially in times of short operating capital. Such an advisory board or power circle should include a lawyer, a certified public accountant, civic club leaders, owners or managers of businesses similar to yours, and retired executives. Setting up such an advisory board of directors is really quite easy, because most people you ask will be honoured to serve.
Once your board is set up, you should meet about once a month and present material for review. Each meeting should be a discussion of your business problems and an input from your advisors relative to possible solutions. These members of your board of advisors should offer you advice as well as alternatives, and provide you with objectivity. No formal decisions need to be made either at your board meeting, or as a result of them, but you should be able to gain a great deal from the suggestions you hear.
Joining Associations
By all means, join your industry's local and national trade associations. Most of these organizations have a wealth of information available on everything from details on your competitors to average industry sales figures, new products, services, and trends. If you are given a membership certificate or wall plaque, you should display these conspicuously on you office wall. Customers like to see such "seals of approval" and feel additional confidence in your business when they see them.
Free Advice
Whenever you can, and as often as you need it, take advantage of whatever free business counselling is available. Your local chamber of commerce or small business advisory will likely have numerous free publications. Most local universities, and many private organizations hold seminars at minimal cost, and often without charge. Take advantage of the service s offered by your bank and local library.
Direction Is Everything
The important thing about running a small business is to know the direction in which you're heading; to know on a day-to-day basis your progress in that very direction; to be aware of what your competitors are doing and to practice good money management at all times. All this will prepare you to recognize potential problems before they arise.
In order to survive with a small business, regardless of the economic climate, it is essential to surround yourself with smart people, and practice sound business management at all times.
Author: http://www.jamesburchill.com
limousine Ackley .. Lockport Chicago limo O’HareIs it right for you?If you decide to advertise your... Read More
Take advantage of world politics today and start your own... Read More
Entrepreneurs are hardy stock. But sometimes hardiness can get you... Read More
Last week we discussed the importance of performing an autopsy... Read More
Until the day I learned to play chess I loved... Read More
As a small business owner, outsourcing work to Virtual Assistants... Read More
Every home business has the same problem of how to... Read More
In franchising an individual desirous of their own business will... Read More
An observation while returning home from a seminar: Getting away... Read More
My colleague, Jane, recently lamented to me an all too... Read More
In your small business debt collection laws will eventually become... Read More
As a successful small business owner,you're accustomed to long hours;... Read More
Q: After years of dreaming about starting my own business,... Read More
This is the tale of two business plans with very... Read More
Self-cleaning glass has been talked about a lot, with such... Read More
Maximum efficiency in the cleaning industry is a key to... Read More
Many government department heads are on the take. Oh they'll... Read More
How a donation is different from a sponsorship and what... Read More
Achieving real success should be the goal of any good... Read More
There is a great deal of abuse going on in... Read More
The current lack of industry leaders represents an exceptional opportunity... Read More
1. TargetYou are not all things to all people. Decide... Read More
Here are some useful tips on what to consider before... Read More
I frequently give presentations at small business gatherings, providing me... Read More
Some things in business are relatively easy to measure ?... Read More
shuttle from O'Hare Alexander ..Last year, trillions of dollars transferred hands on the internet... Read More
How do you make sure you have the business solutions... Read More
This is the tale of two business plans with very... Read More
Business consulting opportunities might be just what your are looking... Read More
Your grandfather probably told you to "learn something new everyday".... Read More
Just a few years ago, when one thought of a... Read More
Aircraft Interiors of personal and corporate jets have hundreds of... Read More
As small business managers, we juggle limited resources in a... Read More
If you own a mobile car washing, pressure washing or... Read More
As a successful small business owner,you're accustomed to long hours;... Read More
I meet and talk to hundreds and hundreds of business... Read More
Boston itself covers 50 square miles of concrete and traffic,... Read More
One way to determine your companies mission statement is based... Read More
If you are looking for a way to own your... Read More
When do annoyances in a relationship become too much to... Read More
When pressure washing heavy equipment each piece of equipment has... Read More
What is the best time to expand a mobile car... Read More
You've always liked flowers and you think the idea of... Read More
Cleaning the trailers towed by big trucks is not easy,... Read More
If you're serious about wanting to start a business, the... Read More
After over thirty years advising small business it still comes... Read More
Aside from the fear of losing a spreadsheet or research... Read More
I'll be the first to admit that I went a... Read More
What is in an information plan?Before you even meet with... Read More
It is most fascinating to study how entrepreneurs spot opportunity... Read More
Small Business |