How Are You Managing the Economic Downturn?

Over the past few weeks I’ve received quite a few cold calls and introductory e-mails from small businesses. I wondered if this was in response to the economic downturn. So I decided to ask a representative sample of small businesses by contacting my LinkedIn network to ask “how are you managing the downturn?”

Less than 20% have responded so far, but I wanted to share with you what I’ve learned as soon as possible. Hopefully you’ll gain some new ideas and perspectives to help you in strategizing for your own business.

The primary strategies initiated by early respondents fall into three basic categories: rethinking, leveraging and streamlining. I’ve organized the responses accordingly.

Rethinking

Many companies are not just being more aggressive, they’re being strategically aggressive. Some are offering new monetary or other incentives. Some are focusing on a redefined or diversified target market. [Read more…]

Business Credit: How to Get It Now

Using credit to defer payment on consumer spending is a way of life for most of us. Yet we may not have taken advantage of the same option for our business. Obviously, use of credit in any circumstance must be done judiciously. For many businesses, however, use of credit can be a lifeline to even out ca$h flow as well as a way to build a credit history for future needs.

Such is the case for a new business that must purchase core product or service-related items for which ca$h is required on delivery, but the sale of those items will not take place immediately. In many cases, once the $ale is made, payment could take as long as another 60 to 90 days, depending on industry practice. Meanwhile operating expenses continue. Ouch!

For any business with a delay between expense and income or one that carries accounts receivable, a credit line can act like a bridge loan to cover expenses pending receipt of payment. It can also be used to cover any unexpected operating expenses. [Read more…]