Survival Tips For Your Small Business

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

---

Self-Employment: Do you know the Difference between Rates and Wages

The difference between rates and wages is not always clear... Read More

Government Does Not Pay Its Bills on Time

Many small companies work very hard to get new accounts.... Read More

The Virtual Assistant

As a small business owner, outsourcing work to Virtual Assistants... Read More

Franchising Industry Burdened in Over Regulation

There were only an estimated 1800 active franchisors in this... Read More

5 Steps To Success for Small Business Owners

Everyone wants to succeed in life. Most people want to... Read More

Small Business Publicity -- Worth It?

You bet it's worth it. Publicity via news releases, along... Read More

11 Things Small Business Owners Can Learn From Rudy Giuliani

1. Leadership Is Learned ? While many people appear to... Read More

The Wrap on Ag Plastic

While driving through Pennsylvania farmland, you have probably noticed an... Read More

Small Business - Is The Accounting Profession Ripping Them Off?

My 16 year-old daughter said, "Gee Dad! You look just... Read More

Small Business Mistakes: Are You Making Enough of Them?

That's right ­ are you making enough mistakes in your... Read More

Tell Me The Reasons Why I Should Believe You?

Have you ever heard the phrase, 'PREPONDERANCE OF PROOF'?I recently... Read More

Maintaining Your Carpet Extractor in Your Auto Detail Shop

Auto Detailing: Maintaining A Commercial Carpet ExtractorYou should drain your... Read More

FTC Report on Franchise Rule Making; What Purpose?

The Federal Trade Commission out of the blue decide in... Read More

5 Small Business Management Questions to Help Choose Marketing Programs

As small business managers, we juggle limited resources in a... Read More

7 Cash Flow Secrets Your Accountant Never Told You

Looking for ways to boost your cash flow? As a... Read More

How Mastering 5 Essential Money Making Ideas Can Lead Your Business to Longterm Cashflow

Essentially there are 5 tremendously powerful methods to make money... Read More

Success Tips for Small Business Owners

Running a small business requires many skills. However, to do... Read More

Mission Statements: More Important Than You Thought

If an organization lacks a mission statement, it is worthwhile... Read More

Do Your Best; Hire the Rest

One of the hidden perks of raising six children is... Read More

Debt Collection Techniques

Here are some sound debt collection techniques that can be... Read More

Trailblazer Interview with Diane J. Levin, Partnering Solutions

Today is a Red Letter Day! It's special because today... Read More

How to Start a Pet Transportation Business

Pet Transportation Services are needed as the number of pets... Read More

Operating Your Small Business ? Everything Really Is a Project

Do you operate your business as a series of projects,... Read More

Self-Employment: Managing Your Money: Tips for Living with a Fluctuating Cash Flow (Part One)

The way you manage your money is one of the... Read More

How the Humble Ice Cube Made Business History

Gather round while I tell you the story of Kennebec... Read More

7 Habits of Highly Successful Small Business Owners

Do you spend every waking minute in your business? Do... Read More

Naming Your Business: 3 Tips To Ensure Success

If you are just starting your business, or if you... Read More

Proper Care and Feeding of the Business Owner

That sizzling sound you're hearing may be a symptom of... Read More

Serious About Writing A Business Plan... Start A Business Plan Library

Tap these treasures of ideas. The best money you can... Read More

Pressure Washing; How to Bid Concrete Cleaning Jobs

Remember the cleaning business is all about time ratio to... Read More

The Franchisors Heavy Load

Why are we over regulation the franchising industry, what purpose... Read More

Creating a Power Plan

Part of the power plan is making sure you have... Read More

SBIR - A Nice Add-on Business

If you are a small business and qualify to participate... Read More