As the recession continues to extend into 2010, we continue to be inundated by news about the challenges that face the small business community.
While we are not completely out of the woods in terms of the economy, there are several things that small business owners can do to protect their businesses during these challenging times:
Manage Collections: Outstanding invoices should be aggressively followed up on round-the-clock. Having unpaid invoices will create instability. Be aggressive and assume the worst.
Collect Upfront: Make sure that all of your contracts stipulate payment upfront. Net 30 can stretch into Net 60, then you are stuck doing work for 2-3 months without being paid.…
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There aren’t many good news stories about banks these days so if you’re looking for a new bank you may be facing the quagmire of what to look for and who to turn to when searching for a new bank. The answer may rest upon what your personal and or business banking needs are.
For many smaller and mid-size companies, the hiring CFO-level talent can be too costly and completely unfeasible. In addition to searching for the right candidate, you have to offer a highly competitive package – even in today’s economy – to attract the top-level finance talent you need for business success.
Many small businesses don’t have the time or resources to adequately monitor their own financial status, no less the ability to screen the finances of their partners, vendors, suppliers or customers. However, if SMB CEOs take away one thing from the current recession – it should be a clear understanding of how important it is to have a transparent view of their customers’ financial situation.
The U.S. economy’s worst recession in the post-war era has begun to turn for the better. Yet, despite the fact that the doom and gloom of the past 20-plus months may be behind us, entrepreneurs seeking to buy businesses still find it difficult to get banks to finance their purchases.
It used to be that even upstart businesses with no credit history could secure $50,000 lines of credit with no documentation. Bank of America began such a program in 2006. And since then, other banks followed suit offering $50,000 and $100,000 loans to new and un-proven businesses. In a press release at the time, Bank of America stated that even “a small business owner in business for only one day could qualify” for its $100,000 line of credit program.
Another large credit card company this week launched a business credit card to specifically meet the needs of small business owners. This launch is yet more proof of how fast the small business segment is growing and contributing to the U.S. economy.
