The old expression “cash is king” really hits the mark during a recession. SCORE reports that 82% of small businesses fail due to cash flow problems. To help recession-proof your business, be sure to have cash and manage it wisely. Here are some ways to do it: Getting the cash you need For most businesses, having […]
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You may need money for your business, but interest rates are high right now. It’s been reported that small businesses are paying the most for loans in 16 years, with the average rate on a short-term loan at 9.2% Still, you may need money to renovate your facilities, hire additional employees, invest in technology or expand to another location. If you need capital to make your vision a reality and you don’t have cash on hand, borrowing may be your only option. Here are 10 places to look for loans, and the upside and downside of each type of borrowing: 10 […]
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Financial experts suggest that people have a savings account to cover 4 to 6 months of expenses in case of an emergency. Yet, according to Bankrate, only 43% of Americans have $1,000 saved for an emergency. This can lead to stress and anxiety for employees who are in the other 57% of the population, which in turn can adversely impact productivity. To help alleviate the situation, if your business has a 401(k) plan, you can allow for a pension-linked emergency savings account (PLESA) beginning in 2024. Here are some considerations to help you decide whether to go forward and get […]
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It’s common knowledge that having a business plan is helpful, if not essential, in running a successful business. But savvy business owners know that having backup plans to address anticipated or unexpected contingencies is just as important. Understand how contingency planning operates and what matters you should address so that you’ll be prepared to handle a recession if it should happen. How plans B and C work The concept of contingency planning is nicely illustrated by HUD’s approach to winter planning back when COVID-19 was a serious issue. Plan A covered the usual or normal projected needs of communities for the […]
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With inflation still prevalent, those nickels and dimes, or $5 and $10 expenses, may not seem so important. But they can add up. Just $10 a month is the equivalent of a $120 a year, which could purchase a mid-level inkjet printer, a meal for 2 at a nice restaurant, and so on. Not so long ago (and maybe still in some companies), there was a petty cash box that could be tapped by authorized employees to pay for little things…a tip for a delivery person, pizza for staff, etc. Maybe the box had $50 or $500. Today, most expenses—no […]
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When it comes to managing a retail business, such as a fashion boutique, maintaining a healthy financial status is crucial for ensuring success in the competitive industry. One way to achieve financial stability is by leveraging a business line of credit. A business line of credit is a flexible financing option that allows you to borrow funds up to a predetermined credit limit, and only pay interest on the funds you actually use. In this article, we will explore five compelling reasons why a business line of credit could benefit your business, providing you with the financial tools necessary to […]
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Small Business Week 2023 runs from April 30 to May 6, so it’s a great time to be talking about small business. Often “small business” is a buzz word used by politicians and large corporations that want to look sympathetic to the challenges actually faced by self-employed individuals and small business owners. But it’s also a favorable status that can help businesses get a pie of the federal government’s procurement pie. The fact is: small businesses are statistically significant. The SBA’s Office of Advocacy released FAQs about small businesses. Note that the SBA usually defines small businesses as those with fewer than […]
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In the last couple of years, the biggest concern for inventory-based businesses has been supply chain disruptions. Now, the focus is on managing inventory in inflationary times with the threat of a recession looming. It’s already been reported that there’s an oversupply of cars, which likely will lead to price wars. What happens when there’s an oversupply? Less demand usually means lower prices. As quipped on PictureQuotes.com, “talk is cheap because supply exceeds demand.” While a recession is not a certainty but surely a strong possibility, what should you be doing now to ensure your inventory meets the Goldilocks standard—not too […]
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Insurance coverage is a must for businesses that hope to survive the impact of storms, fires, and other dramatic, unexpected events. There are certain types of occurrences for which you may think you’re covered, but on closer examination find you’re lacking. Or, even if covered, the extent may not be sufficient. Think about the small businesses in East Palestine, Ohio, who were shut down when the train carrying toxic chemicals derailed there on February 3, 2023. Residents were evacuated and told not to return until February 8, 5 days later—when businesses also began to reopen. But small businesses suffered considerable […]
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Recessions certainly present challenges, but there are opportunities too. Bill Gates started Microsoft during the oil embargo recession of 1973 to 1975, which is just one example of success that started during trying economic times. When it comes to starting a business or having an existing business survive a recession, I’m not sure there are any strategies or suggestions unique to women entrepreneurs. But this is Women’s History Month so let’s focus on women business owners. Recession-proofing your business with a focus on women business owners: Advice for women entrepreneurs What can women business owners do to ensure their companies […]
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