In the previous post, we took a look at some things that you have to consider when starting your own business in the midst of financial crises. We talked about having enough money to tide you over for at least 3 months (more would be better) in case you don’t have enough cash coming in. We also talked about how you have to stay away from certain markets during the recession. What other things can you consider when starting a business during the downturn?

Think about potential sources of money in case you need extra cash to run the business. The small business initiative by President Obama should be at the top of your list. But you should also look at other sources just in case. Relatives? Is that a good idea? Friends? I think that these two groups of people should be your last resort. Actually, if you do not have any other alternative, you might want to let your idea sit for a while till you find a better (and less complicated) source of money.

More than the money that you will be using for your business, consider how this endeavor will change your life – and that of your family’s. This is one thing that has been overlooked by some entrepreneurs. Even if your business plan is as solid as can be, if you do not anticipate the changes that it may wrought on your life, you might have a hard time dealing with circumstances. And remember, your family will be involved in those changes so they should know what they are getting into as well.

Photo courtesy of http://ccsmallbusiness.files.wordpress.com/2008/06/business-debt119.jpg

Most people would think that to start a business now would be akin to committing financial suicide. What do you think? What if I told you that now is the perfect time to start one, provided that you have some capital to work with?

Think about it, there are certainly a lot of advantages to starting up a business right now. While it will not be easy, it could be the right moment for you. So what are these advantages? For one, costs will definitely be lower. With fewer people starting their own business, leasing space will be cheaper. Finding employees (if you need them) should also be easier as more people are looking for jobs.

One thing you have to take note of, however, is that you have enough money to keep you going. The truth is that while it should be relatively easy to start a business, you will face challenges in maintaining it for the next several months. The idea is for you to have enough money to keep the business going for say, 3 months at least, even if money does not come in within that period of time.

Another thing that you have to consider is the market which you will be penetrating. There are certain businesses that you should stay away from during hard times. These are the luxury shops, like spas and similar services, which might not be high on the list of consumers. Instead, study your market carefully and look for a need that has to be met.

(to be continued)

Photo courtesy of Campus Access

I am sure that you have been following the moves of the newly elected US President. After all, he made some promises (a lot actually) during his campaign, many of which will affect your business. For small business owners, you might have been a bit iffy as to exactly how his plans would be affecting you.

If news reports are to be believed, then there is hope – a lot of it. Bloomberg recently ran a story about Obama’s plans to boost small businesses in the country. The story says that:

President Barack Obama will spend more than half of the $730 million in government funds set aside to help small businesses to expand federal guarantees and lower lending fees to try to revive the flow of credit, people familiar with the matter said.

Obama and Treasury Secretary Timothy Geithner will announce the $375 million plan tomorrow as part of a strategy to bolster Small Business Administration lending, the people said. The money will come from the $787 billion economic stimulus plan Congress passed last month.

I don’t know about you, but this is looking good. I am sure that many of you have been facing liquidity problems. Big or small, businesses in the United States have definitely been suffering from cash flow problems. With this aid in the horizon, we just might have better things to hope for. What do you think? Will the aid actually materialize? Will we actually feel the effects? I am definitely hoping.

Ever been bored at the top, well then you are not alone for many of the world’s executives who are located just below the radar aren’t as visible as they should be. Being the people behind the scenes of the world’s richest and most famous people isn’t easy and you know it. Sometimes you feel as if you are not rewarded enough and all the glory goes to your boss who is always the one who ends up presenting your report.
Have good credit yet shun using credit cards? Then now might be the time to try for they are being offered at so minimal requirements as is you get them free. Being a top executive means you have been working hard and doing your job for a long time. It also shows you have principle and then why not prestigious credit cards to reflect your standing in business like Amex Platinum Cards. Pamper yourself and get something back from all your hard work by getting some of the best credit card deals on the planet that allows you to manage your cash properly, credit cards are safe and easy to use, you also lose the risk of theft wherever you go. Keep safe and be safe.

Your business has been on the internet for some years and you’ve suddenly realized customers are not coming back. Why, well maybe your site is getting too much traffic it can’t handle it anymore. That is one of the most common mistakes businesses make, failure to regularly assess their businesses status and strategy over the internet. One simple check would be to go to the web site itself and try to see if your existing design is working for you and similarly for your customers. Ever heard of the suggestions box in your site, it might be overflowing with mail of suggestions of customers your staff may be failing to take account of. As business managers/owners, you need to be on top of things that other people may have overlooked thus ensuring all bases are covered and your business grows with your customers. Remember, as more and more customers try to get into a site, your current set-up may not be enough to handle all the added load so a thorough review and status report of your site traffic and other statistics might be in order.

Too much traffic, consider getting a dedicated hosting service so you get ample resources dedicated to you and your customers all the time. Much is the disdain of customers for sites that fail to load or cannot handle the traffic, for small to medium businesses this can prove to be a killer. Hosting is one of the best ways to save on equipment and other supporting hardware for they are so expensive and costly to maintain you might not be able to handle the costs. That’s why hosting services abound and that’s why you’re earning money, or are you? Better take a look to find out!

If you read JW18’s post on VOIP, you probably got interested in this technology to cut some costs for your business. While VOIP is definitely not a new technology, not everyone has taken advantage of it yet. If you are one of those, why don’t you take a look at three of the most viable options?

First, we have Vonage. I am sure that you have heard this brand name already. I think that they have been quite effective in establishing their name, both for businesses and individuals. Vonage offers a lot of features to its customers but I think that one of their biggest selling points is the fact that they offer toll free numbers – not all VOIP providers have this option. With regard to pricing, Vonage also has a competitive edge – their packages start at $39.99 a month.

Second, you should consider Skype. While Skype started out as similar to the other free instant messaging platforms, they quickly branched out to target businesses and individuals looking for premium service. Skype has even lower costs than Vonage, making it ideal for cost cutting. There is a slight problem with Skype though – you have to purchase a separate package to get a Skype number that other people can call you at.

Third, Speakeasy is fast becoming a contender for very affordable VOIP services. You might recognize the brand because of their broadband speed test services but they have been making noise in the VOIP industry, and should be something to look out for.