Navigating your small business through the ‘Great Recession’
Navigating your small business through the 'Great Recession'
(ARA) - Whether you shop at a local small business in your neighborhood, are a small business owner yourself, or are thinking about starting a small business, everyone in the country is impacted by America's small business economy. Small businesses continue to be the heartbeat of America, representing 99.7 percent of all employer firms and generating 60 to 80 percent of new jobs over the past decade, according to the U.S. Small Business Administration.
While many think that small businesses have been hit harder than the average consumer in the current economic environment, small businesses are often credited as the sector that will likely lead us out of the current "Great Recession." To remain successful in today's economy, it's critical for small business owners to reduce expenses and better manage their day-to-day work.
Here are some tips from Rieva Lesonsky, a small business expert on Bank of America's Small Business Online Community.
* Be smart about your cash flow
"Everyone has heard the phrase 'cash is king,' but for today's small business owners, I recommend adopting the mantra, 'smart cash flow is king,'" says Lesonsky.
Maximizing your earnings potential on idle cash balances is a smart way to get the most out of your cash flow. Small business owners can do this by placing funds in money market savings or short-term CD accounts. Interest earned on money sitting idle will always benefit your business in the long run.
* Reach out to ask for advice and support
For many small business owners, this is the first time they are navigating their business through this type of economy. It's important to remember that it's okay to ask for help. Asking for advice and information from peers who may have experienced a similar situation is a great way to strengthen your business. There are also forums out there for small business owners to obtain expert advice and gain access to additional information they might need for their business. For example, Bank of America's Small Business Online Community is a free and open forum available to all small business owners. Users can network, share, learn and exchange business ideas with peers and experts across the country at any time of the day.
* Every little bit helps
The current economic environment has brought with it many discount opportunities. Many vendors are offering deals right now, making it a good time to invest in new technologies and equipment for your business. Investing in your business now will ensure that when the economy turns around, you are prepared to take advantage of any and all growth opportunities.
* Delegate jobs to optimize efficiency
"As a small business owner, you need to focus your time on innovation and business growth. This means remembering to delegate other office work like staying on top of invoices and collecting on receivables to a trusted employee or service," says Lesonsky. There are many tools available to help small business owners be more efficient and make managing your company's money easier and less time consuming.
For example, Bank of America's Online Business Suite gives business owners the ability to invoice customers, receive payments and pay vendors and employees electronically. Electronic payroll for employees instantly calculates federal, state, local and voluntary withholdings, with 100 percent accuracy guaranteed so you don't have to worry about making these deductions manually. In addition, the Online Business Suite synchronizes with leading financial software and is scalable to meet the needs of your business at every stage of growth.
For more tips on navigating your small business through the current economy, visit Bank of America's Small Business Online Community at www.smallbusinessonlinecommunity.com. You can also visit BankofAmerica.com/yourbusiness to learn more about tools designed to help small business owners manage their business's finances.
Bank of America, N.A. Member FDIC (c) 2009 Bank of America Corporation
Courtesy of ARAcontent
(ARA) - Whether you shop at a local small business in your neighborhood, are a small business owner yourself, or are thinking about starting a small business, everyone in the country is impacted by America's small business economy. Small businesses continue to be the heartbeat of America, representing 99.7 percent of all employer firms and generating 60 to 80 percent of new jobs over the past decade, according to the U.S. Small Business Administration.
While many think that small businesses have been hit harder than the average consumer in the current economic environment, small businesses are often credited as the sector that will likely lead us out of the current "Great Recession." To remain successful in today's economy, it's critical for small business owners to reduce expenses and better manage their day-to-day work.
Here are some tips from Rieva Lesonsky, a small business expert on Bank of America's Small Business Online Community.
* Be smart about your cash flow
"Everyone has heard the phrase 'cash is king,' but for today's small business owners, I recommend adopting the mantra, 'smart cash flow is king,'" says Lesonsky.
Maximizing your earnings potential on idle cash balances is a smart way to get the most out of your cash flow. Small business owners can do this by placing funds in money market savings or short-term CD accounts. Interest earned on money sitting idle will always benefit your business in the long run.
* Reach out to ask for advice and support
For many small business owners, this is the first time they are navigating their business through this type of economy. It's important to remember that it's okay to ask for help. Asking for advice and information from peers who may have experienced a similar situation is a great way to strengthen your business. There are also forums out there for small business owners to obtain expert advice and gain access to additional information they might need for their business. For example, Bank of America's Small Business Online Community is a free and open forum available to all small business owners. Users can network, share, learn and exchange business ideas with peers and experts across the country at any time of the day.
* Every little bit helps
The current economic environment has brought with it many discount opportunities. Many vendors are offering deals right now, making it a good time to invest in new technologies and equipment for your business. Investing in your business now will ensure that when the economy turns around, you are prepared to take advantage of any and all growth opportunities.
* Delegate jobs to optimize efficiency
"As a small business owner, you need to focus your time on innovation and business growth. This means remembering to delegate other office work like staying on top of invoices and collecting on receivables to a trusted employee or service," says Lesonsky. There are many tools available to help small business owners be more efficient and make managing your company's money easier and less time consuming.
For example, Bank of America's Online Business Suite gives business owners the ability to invoice customers, receive payments and pay vendors and employees electronically. Electronic payroll for employees instantly calculates federal, state, local and voluntary withholdings, with 100 percent accuracy guaranteed so you don't have to worry about making these deductions manually. In addition, the Online Business Suite synchronizes with leading financial software and is scalable to meet the needs of your business at every stage of growth.
For more tips on navigating your small business through the current economy, visit Bank of America's Small Business Online Community at www.smallbusinessonlinecommunity.com. You can also visit BankofAmerica.com/yourbusiness to learn more about tools designed to help small business owners manage their business's finances.
Bank of America, N.A. Member FDIC (c) 2009 Bank of America Corporation
Courtesy of ARAcontent