Posts Tagged ‘Downturn’

Investing’s Basic Rules

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Basic Rules in Investing

Do not put up cash that you cannot afford to lose ought to the market take a downturn.

There is a key word in the preceding phrase however. In order to realize what the numbers means, you are required to have a galore of primary surroundings and training.

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Starting a Business in a Down Economy

There are many of us at the Small Business Development Center who believe that this is a good time to start a business. While it certainly is not a great time to get a bank loan for working capital, there are several key attributes found in businesses that open in a down economy. These entrepreneurs tend to be very committed to researching their idea thoroughly, select partners more carefully and weigh purchases more wisely than free spending business owners earlier in this decade.

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61% of Americans Have Started a Business or are Considering Doing So.

We see lots of people who are considering a business startup. They are either creating a business out of a hobby they love, desire to get out of the rat race and spend more time at home, have discovered a better way to do something, or are “accidental entrepreneurs” who lost their job and feel the need to create something for themselves. This Wall Street Journal article from their Reinvent section, shows the increasing popularity of entrepreneurship. 

Ready to be the Boss?

Becoming an entrepreneur seems to be in vogue in this downturn.

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The Economist:Small Businesses Optimistic Worldwide

Small business executives remain optimistic about the long term despite global recession

Yet most remain very worried about the short-term outlook and say that governments are doing too little to support them, according to a survey by the Economist Intelligence Unit

It is nice to get a worldwide perspective on the state of small business from time to time.

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Where Should Small Business Owners Focus In Today’s Economy??

The times may be tough, but a lot of businesses are facing all the same issues they were before. And some of us are still very busy. I suspect some of your usual programs could be retooled slightly to help people take advantage of the opportunities that are the flip side of any downturn.

Put it this way …. don’t panic, calm down, and think strategically.

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What Are The Best Pricing Practices For Small Business During An Economic Slowdown?

In an economic slowdown your pricing is determined by factors like input cost of production or distribution channel cost etc. ….. which are primarily working on market factors. Generally one should be working on a reactive strategy of open price …. which allows for revision in product pricing over a shorter time period instead of quarterly or yearly market driven slashes or increases.

The important consideration is to try to maintain sales, even if some of them yield marginal or no profit (i,e, break even).

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Joe The Plumber & The Small Business Tax Issue

When it comes to taxes this election and Obama vs McCain … just what does it mean to be “Joe The Plumber” or any small business owner for that matter?

If the problem we have in the country is a lack of jobs (unemployment numbers have been increasing, but this is one of many issues), should we be increasing the taxes of the job producers (remember Small Businesses create the most jobs in the US)?

Most small businesses don’t have the mythical $250,000 income (though they may make over $120k at which point McCain’s plan would save them more in taxes).

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Tough Time to Borrow

We’re seeing a real downturn in the number of banks interested in doing business loans including SBA loans. If you are in startup mode, its going to be even harder.

The Small Business Administration last week encouraged banks that participate in SBA lending to be more willing to do loans and not rush to call in existing loans. This pitch by the SBA we caused by the clear lack of options to secure funding using conventional loans or the personal equity in their homes as those loans dry up.

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