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.