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Shelling Out To Keep Your Business Alive Entrepreneurs typically have a passion for the business they've created. With the economy down, many business owners are facing tough decisions about how to keep their business afloat until sales improve. What would you be willing to do? For instance, would you liquidate personal assets to keep your business alive?A recent study shows more small-business owners are contemplating doing just that -- dipping into their own funds to keep their business going. The Discover Small Business Watch survey of 750 small-business owners found nearly two-thirds--61 percent--of owners thought it likely they would tap into personal assets to stay afloat within the next year. Forty percent said it was "very likely" they would use their own cash, while another 21 percent said it was "somewhat likely." These owners mostly don't plan to hit up friends and family, either--67 percent said it was "not very likely," or "not at all likely," that they'd get more operating cash that way. Just a month ago only 46 percent of small-business owners surveyed said they were experiencing cash-flow issues. Reading this study made me think about the businesses I see struggling in my own town. Some are trying hard, marketing everywhere--on city-specific online forums, sponsoring events, using Val-Pak. But many others have become invisible. Right now the main strip mall in my town is home to a large, empty former Pizza Factory space that went independent, and then shut down--which no one has wanted to lease for more than a year. Next door is a crepes shop that went bust. Across the parking lot is a large empty space that was a mom-and-pop coffeehouse. And down from that, perhaps saddest of all, is a new yogurt shop that opened at the end of summer, too late to catch its prime season in my chilly Seattle-area market. I've seen zip in marketing from that new store, which also doesn't bode well. Other local businesses I know are likely shoveling their own money in hand over fist right now to keep going. Which would you do--put in your own cash, or close your doors? Are you thinking about tapping your personal assets to survive? That's always a risky proposition, as you don't know if you're throwing good money after bad. What are you willing to do to make it through the downturn? Leave a comment and tell us your strategies for keeping your cash flowing.
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| Posted under: Money, Small Biz News
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It seems when the going gets tough many business owners make the fatal mistake of reducing their advertising and marketing budget. When I ask these entrepreneurs what would solve their problems that all say more customers and more sales - and I return with a question asking "if that’s true (and it is) then less marketing and advertising is not going to help. It just doesn't make sense. When you need more customers you market even more, but perhaps you need to consider the message you promote or where you promote it. There are a few well known websites that will allow business owners to market their businesses totally free. One such website is www.cheaplocaldeals.com based in Virginia and now going nationwide. I suggest that if cash flow is limited then find quality websites like www.cheaplocaldeals.com and others to grow your business, but whatever you do NEVER just stop promoting your company.
Strategic Growth Advisors: Another thing that becoming an entrepreneur requires is vision, and the ability to change your job to fit the times. Take Byron Wycoff, for example. Instead of just working with advertisers in the direct online marketing arena, he has developed relationships directly with networks and has become a network in himself. His successes are an example of the flexibility and expandability of online business.
http://econnect.entrepreneur.com/byronwycoff/
I was a business man in Kerala, India. I was running a computer shop there. I started my shop as an internet cafe in 1999, after one year i expanded my firm to a computer reseller. I acquired components from main city and compiled it with my technicians and sold it to near by customers. Even after running my firm for 9 years i didnt find a good amount for savings. What ever money parked was put back to the business. Like wise it went for 9 years. Later i thought it is dangerous to continue the business. Because i was taking my fathers assets to continue my business. Every six months i drawn minimum 50,000 to the system. This was continued for many years.. At the same time i was making an investment in small companies which could be taken back only after 2-4 years. These money was invested regularly from the business. I still dont know the reason why the business was not meeting the cash requirements. As the sole bread winner. I was having my all home expense from this shop. Later i thought of an alternate option and found a job in middle east. Right now i am in middle east doing a job in web based vehicle tracking solution. Now i am able to save money and i have solved all loan issues which i have taken for business.
This article touches on a difficult subject - how far will you, how far SHOULD you go to keep your business alive. A lot depends on how clear your vision of its future prospects is.
I wrote an article recently that discusses how to know whether to keep a business going when the situation gets dismal. Perhaps some readers will find it useful.
How To Own a Business in Lousy Times...without Completely Stressing Out
www.ehow.com/how_5582117_own-times-completely-stressing-out.html
business is really slow i have ideas to increase sales taking less profit to generate sales hoping things will get better finding capital is hard if anyone out there can help please email me at kelvin@westburypharmacy.com
Becoming an entrepreneur requires passion, dedication, innovation and determination. Giving up all too easily is not.