Christmas is the time to give, and most often, that also means having to spend. After all, a lot of people equate giving with cash and gifts that have to be bought. When it comes to companies – big or small – it has become a tradition to give gifts or bonuses around Christmastime. While this has been the tradition, things have been changing, especially with the economic crisis that has been prevailing for quite some time.

In fact, AP just released a report on a survey in this regard. The details:

NO BONUS: More small-business employees can expect no end-of-year bonuses or gifts for 2009.

A recent survey of small business owners or managers showed fewer of them planning gifts or cash for their workers. “Business owners are still feeling pinched cash wise,” said American Express business adviser Alice Bredin. AmEx’s small business division conducted the survey.

Last year, 44 percent of those surveyed said employees would get an end-of-year bonus. This year, only 31 percent did. Even fewer are planning raises: 16 percent, compared with 30 percent last year. Meanwhile, in 2008, 46 percent of owners or managers said employees would get holiday gifts. This year, it’s 35 percent.

The business owners or managers surveyed oversaw companies with fewer than 100 employees.

This is definitely bad news for small business employees, but perhaps business owners can find a way to lessen the impact of not being able to give bonuses? What are you planning to do for your employees this Christmas?

Photo courtesy of Acme Climate Action

You might think that I am going crazy. The economic world is rather unstable right now. Who in his right mind would turn his attention to expanding and looking for other opportunities instead of focusing on the problems at hand? Well, let me tell you, in these hard times, there will always be opportunities for those who are alert to them. And you never know, these opportunities may very well be the answer to some of the problems that you face in your small business.

As a matter of fact, other business experts are thinking along the same lines. I recently read an article by Jared Lauber and Joe Orlando of Frank, Rimerman Consulting. It was thought provoking and encouraging at the same time. The conclusion really struck home:

The key to any decision-making process, especially in the assessment of risk, is a continuous and thoughtful assessment of available information. Every business owner must develop a fundamental understanding of the facts surrounding their business. Business owners need to know as much as they can about themselves and the world in which they compete. Similarly, every individual needs to understand their personal income statement and balance sheet. The better prepared a business owner or individual is to embrace change, understand risk, maintain visibility and seek out opportunity, the more likely they can begin the process of putting comfort back into what has become an uncomfortable world.

This simply means that we may have to look outside of our comfort zones and perhaps find a hidden gem that can make our comfort zones ever wider. Brilliant, don’t you think?

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 since President Obama stepped into office, talks about the stimulus package have been going on. From the capitol to Wall Street to coffee shops – the stimulus package has been much talked about. Some people are all for it while there are those who think that it’s a waste of tax payers’ money.

On the part of small business owners, however, the stimulus package just might be what they need to tide them over till the economy gets back on its feet. MSNBC published a feature last week, stating how the stimulus can actually be put to good use by small business owners:

A meeting brought federal officials and local entrepreneurs together on Thursday to help small business owners navigate the stormy economy.

Representatives from the Small Business Administration and Rep. Lee Terry met with business owners to discuss ways to modify programs designed to help them. “Small business is our economy,” Terry said.

He said the stimulus package, which provided $730 million for the SBA, will help provide new loans to assist small businesses with meeting debt payments, will offer higher loan guarantees and reduce loan fees.

What does this mean to you? If you are a small business owner and you have been struggling – or you are looking at that possibility, then the knowledge that you can get new loans with lower fees would be more than welcome. In this time of difficulty, this opportunity is a refreshing one, with the conventional lenders and creditors being more conservative. Let’s see how this thing develops.

The technology has been around for so long that it has managed to evolve as a primary business tool for communications. Known mostly to support and call centers, VoIP has gone mainstream saving businesses the much needed cash that hard to come by in today’s economic downturn. From high-end hardware based VoIP that has dedicated hardware designed to work similar to the private branch exchange systems of days past to more affordable soft-VoIP or software-based VoIP that uses emulators presenting the communications interface through the computer’s monitor.
Communications is one of the most expensive costs in a business and what better way to save than to use the existing internet connection for the same purpose. VoIP for business allows the downsizing of the communications infrastructure that used to cost businesses thousands of dollars turning to the ever present internet for communications that with the addition of a mic and speaker system turns into a more profitable investment.

Some credit card companies have been known to be notorious when it comes to customer support even if they come form some of the biggest names in the financial industry. Good thing is, that there are several banks and institutions that offer similar products that may cater to your particular need for attention to finances. Most banks offer their products in conjunction with their card services and some have exceptional track records when it comes to customer service.
May it be for card assistance, replacement or other trivial inquiries, they go the extra mile for the customer. Credit card offers come with 0% balance transfers from your current card provider making it easy to manage your finances. Indispensable for business folks, these small but mighty financial products allow us to safely do business without the risk of theft. May it be through their web sites or counters, they’ll be glad to provide you with the information you need for such services. do be careful with them, for they are ideal targets for criminals and vigilance is always warranted with such a powerful financial tool.

Now might not be a good time to start a business in many people’s eyes but hey, things are looking up and in the next several months or so, we might actually witness change. More so, there are sectors which are still profitable and could use some new businesses. Here are some of the top industries you should consider when starting a new business, courtesy of INC.com.

Employment services
Today’s business environment is hyper-competitive and constantly in flux. To increase response time, companies have turned to temporary employees, in an effort to stay productive while managing overhead. This trend is projected to continue through 2012, pushing up the employment rate in this sector by 54%.

And guess where companies look to for temporary employees? Head hunters and other similar services!

Home health care
While employment in the health service industry is projected to grow 28% by 2012, employment in the specialized home health care industry is expected to be nearly twice that, or 54.5%. Each year, over 7.6 million people are provided with home health care services.

Thanks to science and medicine, people are living to a ripe old age more and more. This means, however, that more people are needed assistance at home. And that is where home health care comes into the picture.

Motion picture/video
Today, Americans and much of the world flip through over 200 channels of programming. The movie industry has grown in a similar fashion, with single movie houses getting consumed by 20-screen theatres with stadium seating. Such a massive amount of programming requires a commensurate supporting industry of production studios, distributors, advertisers and engineers, just to name a few. Over the next decade, the number of persons employed by the motion picture and video industry is expected to grow 31%.

This sector may require more long term thinking but hey, if you’re in it for the long run, you should consider this.

More ideas in the original article.

No I am not going nuts. I know that you must be thinking that hiring more people at this point in time is the last thing on your agenda. But if you think about it, if you have the money to take on more employees, this is the perfect time to do so. Let me explain why.

I am sure that you are aware that many companies are either laying off employees or closing shop. This means many things but the main thing that concerns you is this – there are a lot of talented and experienced people who are in the market for a job. These people used to have security in terms of their salary but are now out on the streets, looking for a source of income. Consequently, if you have the extra cash to spend, you might as well snap up these talented people who are hungry for jobs.

There is no doubt about it, there is a shortage of jobs and a surplus of manpower at the moment. The sad truth is that many people who are unemployed are reassessing their priorities when it comes to what jobs to take. This means that you, the employer, can find great people perhaps at a lower expense.

Another aspect which could be beneficial to both employee and employer is the flexibility of work relationship. Instead of hiring a full time employee, you might be able to work out a part-time position. These opportunities – and more – can actually open up for you in these hard times.