Comments on: How do I survive the down economy? http://smallbusiness.blogs.cnnmoney.cnn.com/2008/07/16/down-economy/ Editors from FSB magazine answer your pressing small-business questions. Thu, 05 Nov 2009 16:07:19 +0000 http://wordpress.com/ hourly 1 By: JAMES TAUPOLA TACOMA,WASHINGHTON. http://smallbusiness.blogs.cnnmoney.cnn.com/2008/07/16/down-economy/#comment-1120 JAMES TAUPOLA TACOMA,WASHINGHTON. Mon, 24 Nov 2008 00:21:51 +0000 http://askfsb.wordpress.com/?p=395#comment-1120 IM WANTING START UP A LITTLE CONCRETE BUSINESS, ALTHOUGH I DONT HAVE ANY KIND OF CREDIT LINE BUILT UP. IS THERE SOME KIND OF PROGRAM THAT I CAN APPLY TO RECEIVE A LOAN?? ALSO MY BUSINESS WOULD CONSIST OF ALL PHASES OF CONCRETE WORK, CONCRETE & ROCK WALL DESIGNS. FOOTINGS-FOUNDATIONS. PLEASE LET ME KNOW. THANK YOU.. IM WANTING START UP A LITTLE CONCRETE BUSINESS, ALTHOUGH I DONT HAVE ANY KIND OF CREDIT LINE BUILT UP. IS THERE SOME KIND OF PROGRAM THAT I CAN APPLY TO RECEIVE A LOAN?? ALSO MY BUSINESS WOULD CONSIST OF ALL PHASES OF CONCRETE WORK, CONCRETE & ROCK WALL DESIGNS. FOOTINGS-FOUNDATIONS. PLEASE LET ME KNOW.

THANK YOU..

]]> By: Tony Vignieri, San Diego, CA http://smallbusiness.blogs.cnnmoney.cnn.com/2008/07/16/down-economy/#comment-769 Tony Vignieri, San Diego, CA Fri, 18 Jul 2008 00:00:43 +0000 http://askfsb.wordpress.com/?p=395#comment-769 Experts are predicting the economic contraction to continue through 2009, so your question is vital to many business owners. Without knowing too much about your business, the advice offered is somewhat general. These tips can help many businesses to make it through more challenging times. <b>Borrow smartly/Renegotiate your loan terms</b> Bankers are often willing to stretch out or balloon principal payments, if the business has a solid plan to increase their revenues. Banks sometimes will renegotiate loan terms for good customers. Starting a line of credit with a second lender can give you more options, negotiating power and an alternative in case your bank begins to view your company as a risk. <b>Renegotiate deals</b> Renegotiating deals with your current suppliers can offer numerous benefits. You can extend your payment terms and thereby avoid borrowing money to pay your suppliers, or you can negotiate a lower cost of goods and increase your profit margins. <b>Boost your advertising</b> Companies can take business from weak competitors and position themselves for future growth by advertising more when competitors start advertising less. Companies that don't cut advertising reap disproportionate rewards once the hard times are over. This approach works best when the competition has cut its ad expenditures significantly (between 40 to 60 percent). <b>Upgrade your personnel</b> Take stock of your staff with an eye to increase both your available cash and your profitability. It might be time to think about which of the weaker performers can be replaced by high performers. Don’t get rid of your good employees, as you will lose the money you put into their training. <b>Expand internationally</b> Any company with the potential for an international sales presence should look into establishing one. While the dollar is weak, American goods and services are highly affordable abroad. Foreign sales and exports are a sort of insurance policy for many companies. <b>Don’t lower prices, add value</b> Lowering your prices tends to hurt your brand and makes it difficult to raise prices later. Instead, create some new value proposition that makes your prices appear lower. <b>Make use of your peers</b> Talk to or meet with other business owners in your industry. Get together and use each other like an advisory board to find solutions to your issues. CEO membership organizations such as Vistage exist for this very purpose. Vistage offers a free booklet “Managing in an Uncertain Economy” at <a href="http://vistage.com/economy" rel="nofollow">Vistage.com/economy</a>. Experts are predicting the economic contraction to continue through 2009, so your question is vital to many business owners. Without knowing too much about your business, the advice offered is somewhat general. These tips can help many businesses to make it through more challenging times.
Borrow smartly/Renegotiate your loan terms
Bankers are often willing to stretch out or balloon principal payments, if the business has a solid plan to increase their revenues. Banks sometimes will renegotiate loan terms for good customers. Starting a line of credit with a second lender can give you more options, negotiating power and an alternative in case your bank begins to view your company as a risk.
Renegotiate deals
Renegotiating deals with your current suppliers can offer numerous benefits. You can extend your payment terms and thereby avoid borrowing money to pay your suppliers, or you can negotiate a lower cost of goods and increase your profit margins.
Boost your advertising
Companies can take business from weak competitors and position themselves for future growth by advertising more when competitors start advertising less. Companies that don't cut advertising reap disproportionate rewards once the hard times are over. This approach works best when the competition has cut its ad expenditures significantly (between 40 to 60 percent).
Upgrade your personnel
Take stock of your staff with an eye to increase both your available cash and your profitability. It might be time to think about which of the weaker performers can be replaced by high performers. Don’t get rid of your good employees, as you will lose the money you put into their training.
Expand internationally
Any company with the potential for an international sales presence should look into establishing one. While the dollar is weak, American goods and services are highly affordable abroad. Foreign sales and exports are a sort of insurance policy for many companies.
Don’t lower prices, add value
Lowering your prices tends to hurt your brand and makes it difficult to raise prices later. Instead, create some new value proposition that makes your prices appear lower.
Make use of your peers
Talk to or meet with other business owners in your industry. Get together and use each other like an advisory board to find solutions to your issues. CEO membership organizations such as Vistage exist for this very purpose. Vistage offers a free booklet “Managing in an Uncertain Economy” at Vistage.com/economy.

]]>