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According to a recent survey by the National
Association for the Self-Employed (NASE), small
businesses and many entrepreneurs are generally
pessimistic about 2009.
In the survey, half of the respondents are already
feeling the effects of the slow economy, and 43%
indicated that this is the worst downturn that
they've experienced.
Most of those surveyed indicated that they would
use their personal savings to shore up their
business, scale back the purchase of inventory or
equipment, lower prices, or cut pay.
"Cash is king," as they say. Since quick access to
cash is critical for small business, and access to
credit is scarce at best, many business owners
feel that cutting back or tapping into personal
savings will provide a much needed boost to cash
flow.
While most of American small and mid-sized
businesses continue to struggle with the current
economic environment, there is a silver lining. As
we noted in a previous article "Factoring:
The Small Business Loan Alternative", business
owners have a little known alternative choice to a
traditional bank loan, line of credit or any of
the cash flow boosting mechanisms listed above.
Experts agree that, despite the economic slowdown,
entrepreneurs can start and even grow their
business with the right tools (See "Small
Businesses Can Face Economic Downturns With
Confidence").
While there is no crystal ball that accurately
predicts the future, small business owners can
take steps that will help their enterprises endure
the worst of times, and position them for success
when conditions inevitably improve.
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