Deprecated: mysql_connect(): The mysql extension is deprecated and will be removed in the future: use mysqli or PDO instead in /home/a26f9f83/public_html/articles/includes/config.php on line 159
Small Business Survival Tips > NetSparsh - Viral Content you Love & Share

Small Business Survival Tips

No matter what kind of small business you have, you need read these "small business survival tips" which will help you to succeed.

You may be in Internet business, traditional business, or you may be a local merchant with 150 employees; whichever, however or whatever--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."

Some of the things you can and should do include protecting yourself from expenditures made on sudden impulse. We've all bought merchandise or services we really didn't need simply because we were in the mood, or perhaps in response to the flamboyancy of the advertising or the persuasiveness of the salesperson. 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.

If you are incorporated, you can eliminate these "impulse purchases" by including in your by-laws a clause that states: "All purchasing decisions over (a certain amount) are contingent upon approval by the board of directors." This will force you to consider any "impulse purchases" of considerable cost, and may even be a reminder in the case of smaller purchases.

If your business is a partnership, you can state, when faced with a buying decision, that all purchases are contingent upon the approval of a third party. In reality, the third party can be your partner, one of your department heads, or even one of your suppliers.

If your business is a sole proprietorship, you don't have much to worry about really, because as an individual you have three days to think about your purchase, and then to nullify that purchase if you think you don't really need it or can't afford it.

While you may think you cannot afford it, be sure that you don't "short-change" yourself 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.

Particularly when sales are down, you must be "hard-nosed" with people trying to sell you luxuries for your business. When business is booming, you undoubtedly will allow sales people to show you new models of equipment or a new line of supplies; but when your business is down, skip the entertaining frills and concentrate on the basics. Great care must be taken however, to maintain courtesy and allow these sellers to consider you a friend and call back at another time.

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 the 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.

Many small 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 an attorney, 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 honored to serve.

Once your board is set up, you should meet 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 od 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.

You will find that most of your customers have the money to pay at least some of what they owe you immediately. To keep them current, and the number of accounts receivable in your files to a minimum, you should call them on the phone and ask for some kind of explanation why they're falling behind. if you develop such a habit as part of your operating procedure, you'll find your invoices will magically be drawn to the front of their piles of bills to pay. While maintaining a courteous attitude, don't hesitant, or too much of a "nice guy" when it comes to collecting money.

Something else that's a very good business practice, but which few business owners do is to methodically build a credit rating with their local banks. Particularly when you have a good cash flow, you should borrow $100 to $1,000 from your banks every 90 days or so. Simply borrow the money, and place it in an interest bearing account, and then pay it all back at least a month or so before it's due. By doing this, you will increase the borrowing power of your signature, and strengthen your ability to obtain needed financing on short notice. This is a kind of business leverage that will be of great value to you if or whenever your cash position becomes less favorable.

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 your office wall. Customers like to see such "seals of approval" and feel additional confidence in your business when they see them.

Still another thing often overlooked: If at all possible, you should have your spouse work in the business with you for at least three or four weeks per year. The important thing is that if for any reason you are not available to run the business, your spouse will be familiar with certain people and situations about your business. These people should include your attorney, accountant, any consultants or advisors, creditors and your major suppliers. The long-term advantages of having your spouse work four weeks per year in your business with you will greatly outweigh the short-term inconvenience. Many couples share responsibility and time entirely, which is in most cases even more desirable.

Whenever you can, and as often as you need it, take advantage of whatever free business counseling is available. The Small Business Administration published many excellent booklets, checklist and brochures on quite a large variety of businesses. these publications are available through the U.S.Government printing office. Most local universities, and many private organizations hold seminars at minimal cost, and often without charge. You should also take advantage of the services offered by your bank and local library.

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.

---------------------------------------------------------
Julia Tang publishes Smart Online Business Tips, a fresh
and informative newsletter dedicated to supporting people
like you! To find out the best online business opportunities,
and to discover hundreds more proven and practical internet
marketing secrets, plus FREE internet marketing products
worth over $200, visit: http://www.best-internet-businesses.com
------ ----------------------------------------------------
Note: Feel free to publish it with the resource box and content
unchanged

In The News:

This RSS feed URL is deprecated, please update. New URLs can be found in the footers at https://news.google.com/news

Rochester Democrat and Chronicle

5 tips for getting the most out of Small Business Saturday
Rochester Democrat and Chronicle
Not into the hustle and bustle of malls and big box stores? Small Business Saturday is the day to shop for you. On the day after Black Friday, local retailers will roll out the red carpet for their customers. Small Business Saturday first started in ...
Small Business Saturday to be held Nov. 25Daily Tribune News
Shopping local at area small businessesEast Peoria Times-Courier
Don't forget Small Business Saturday when making your shopping plansFresno Bee (blog)
Green Bay Press Gazette -HuffPost -KSFY
all 75 news articles »

Forbes

7 Marketing Automation Tools That Could Change Your Small Business
Forbes
As every small business owner knows, wearing a lot of hats is how you keep your company in the black. The problem, of course, is that any business owner only has 24 hours in a day. Cramming business development, customer service, marketing, production ...


The Oakland Press

Birmingham offers perks to shoppers on Small Business Saturday
The Oakland Press
Birmingham offers perks to shoppers on Small Business Saturday. Downtown Birmingham is preparing for Small Business Saturday on Nov. 25, an Oakland County and national holiday shopping campaign. Anne Runkle-The Oakland Press. By Anne Runkle ...

and more »

Inc.com

Small Business Owners Expect to See Higher Revenues This Year ...
Inc.com
Sixty-seven percent of small business owners expect to increase revenues on their companies by the end of this year, according to a new survey from Kabbage.

and more »

Loveland Reporter-Herald

Loveland small businesses join 'Local First Week'
Loveland Reporter-Herald
Members of the Loveland small business community participated in the launch of a statewide campaign to encourage shoppers to try local shops first this holiday season and beyond. "'Local First Week' is an initiative to raise awareness of shopping ...


WSET

Downtown businesses develop concern ahead of Small Business Saturday
WSET
LYNCHBURG, Va. (WSET) -- Businesses in Downtown Lynchburg are concerned that the Main Street Bridge closure could effect their sales ahead of Small Business Saturday. "Small Business Saturday is a huge deal for us. We make a large portion of our ...

and more »

Reno Gazette Journal

Small business needs congressional action: Tsarpalas
Reno Gazette Journal
The president was right when he said Congress had a generational opportunity to treat small businesses in a way that's commensurate with their contributions to our economic health and security. Our outmoded tax code hasn't been updated since the 1980s.
Any Tax Reform Must Ease The Onerous Burden Of Taxes On Small BusinessesThe Daily Caller
Aaron Bean: Small business tax cuts should be Congress' top jobFlorida Politics (blog)

all 7 news articles »

Morehead News

Shop Local: Small Business Saturday is this weekend
Morehead News
“We urge you to get out in Morehead and Rowan County and shop and support our small businesses,” Williams said. “Supporting local businesses is a way of living mindfully and giving conscious thought to where you are spending your money and where it ...


Digiday

Cafes, lockers and more small-business services: What the bank of the future should look like
Digiday
“You know what I hear a lot of?” said the bank's small business banking head. “'Sharon, we need more bankers, we need more bankers!'” Miller oversees more than 2,500 small business banking specialists across 4,600 branches in 90 different local markets.


INTHEBLACK

6 lessons for growing your small business
INTHEBLACK
They innovate, they use digital marketing and they're always looking for new opportunities. Learn from these successful small business owners in the Asia-Pacific region. In its annual survey of small businesses in the Asia-Pacific (PDF), CPA Australia ...

Google News

The Workers? Compensation Situation in this Country is Nuts, Arnold in CA Takes Action

The Workers' Compensation situation in this country is unbelievable. Why,... Read More

Carwash Franchisor Case Study

There are only a handful of car wash franchises in... Read More

Small Business Pricing Strategies

TACTIC #1 -- Never simply slash your prices, unless you're... Read More

Small Businesses With Work Trucks; A Warning

If you are a non-operator owner of many work trucks,... Read More

Small Business - A Thing Worth Doing Is Worth Doing Badly

A thing worth doing is worth doing badly. Yes I... Read More

Business Scents - Do They Work?

You see it often in large shopping complexes. Customers seem... Read More

Data Loss - Can Your Company Survive? (Most Do Not)

Data. Most people think it is a term relegated to... Read More

How To Cut Expenses And Manage Your Business

If you own a small business, you should know that... Read More

Where to Find a Cash Windfall of $10,000 to $1,000,000 -- You Never Knew You Had

There is a rather famous true story called "Acres of... Read More

The End -- Fireworks or Fizzle?

Seems as though there are a lot of business closings... Read More

Dig Deep for Small Business Ideas Before You Start the Wrong Business

If you're serious about wanting to start a business, the... Read More

Over Disclosure Hurts Businesses

Many investors and business ethics professionals are calling for more... Read More

Franchisor Prospect Checklist Sample Form

Due to the over regulation in the Franchising Industry and... Read More

Franchising VS Business Opportunity; What is the Difference?

The modern Franchise business model and the much different business... Read More

Marketing Your Small Business - The Top 10 Brilliant Ideas

A Brilliant Marketing Idea... sounds great but what is it?... Read More

Have You Thanked Your Competitors Today?

Competition in the business world is often viewed as a... Read More

Fire the CEO

If you are the boss and you think your job... Read More

Going Public: Now that You Have Successfully Made the Transition, What Do You Do?

Ok, you have successfully accomplished your dream of being the... Read More

The Step Zero Effect

The key to organizational focus and helping those who need... Read More

Small Businesses - Big Obstacles

Everyone is talking about small businesses. In 1993, when it... Read More

Don?t Wait for the Perfect Plan

1. Don't Spend Too Much Time PlanningWhen you are entering... Read More

Accounting and Billing Procedures for Small Business

No matter how small your small business is, it is... Read More

Boat Hull Cleaning Procedures for Owners and Detailers

For really tough boat hull cleaning you will need to... Read More

To Buy Or Not To Buy: Lawn Mowing Business

TRUTH IN THE LAWN MOWING INDUSTRYWe do not wish to... Read More

Todays Chef, Tomorrows Restaurateur -- Startup Tips by Restaurant Consultants Inc

Researching information for a recent business plan, I came across... Read More