Buzgate User Writes
Dear Captain BUZ:
Rising energy costs are killing my profit margin; my bank has stopped lending to small businesses, and I’ve had to cancel the company health insurance policy because it’s too expensive. If this keeps up, I stand to lose everything I’ve worked for over the past decade?!?!
Help?
John, New York
Dear John:
There is no fast fix for what’s going on in the economy right now, and it’s still unclear what effect it will have on small business over the long haul.
However, there are a number of options available to you now that are listed below and may help. Click on the options that interest you and you will then choose what state your business is in to be taken to the page with more information on that topic.
- Don’t spend unless you absolutely have to. Start by improving your Cash Flow Management to know how much you have for what and when.
- Cut operational costs through outsource responsibilities like payroll, human resources, and HR management. This can help to save money, time and reduce liability.
- Investigate creative funding sources such as credit card factoring, peer-to-peer lending, lines of credit, factoring, or debt restructuring.
- Cut overhead like rent, heating and electricity by having employees work from home. There are remote technologies, online collaborative workspace, online meeting software and virtual phone systems that all support this option at costs small businesses can afford.
- Use public programs at no or low-cost including specialized sources of financing, business counseling and business development.
- Increase business development through tools such as email marketing, accepting credit cards, reinforcing brand awareness, and using sales proposals to secure new business.
- Negotiate. In tough economic times, vendors are often willing to work with long term, loyal customers. If you can pay early, ask for a discount. If you can’t pay on time, ask for an extension to stretch out cash flow. You have nothing to lose and everything to gain by asking.
Also critical is building your business support networks. SCORE represents a national network of volunteers who offer their time, expertise and access to other business people in your community who can provide assistance specific to your business needs.
We hope some of this information helps and welcome your feedback and questions. Good luck!
Sincerely,
Captain BUZ
Filed under: Uncategorized | Tagged: economy, funding, public programs
