If you are having a hard time lately with your business, you are not alone. However, if you also happen to be frugal and inclined to wear many hats, you have a better chance of surviving when times are tough. Considering the foolishness of forecasting a recovery before it arrives, we believe it makes sense to be as prepared as possible for the “long haul” and are offering a few ENTREPRENEURIAL SURVIVAL TIPS.
One of the essential elements for survival is keeping your company as lean as possible. Just as a famine would force you to ration the amount of food you ate in order to survive, so should a sluggish economy force you to feed your company what it needs to survive. Keeping your business lean and fit will enable your business to survive much more easily than would a larger, more gluttonous company.
Just like a diet, one must ask before purchasing or agreeing to a new service: Do I Really Need This? What value will this bring to my business bottom line? Will this current craving enhance my company and is it in alignment with my company’s mission statement and vision? Are there other less expensive options available? Have you considered bartering for a needed service or product? We barter a great deal. Bartering helps establish great bonds and improves your network.
Jeff Cornwall (see below) also explores this topic in his article Stagnation? Double Dip? Here's how Entrepreneurs can survive at the Christian Science Monitor's website. We really enjoyed the concise manner in which he summed up what to expect. He offers some great advice on how to adjust to the economy, so we encourage you to check it out here: http://www.csmonitor.com/Business/The-Entrepreneurial-Mind/2010/0817/Stagnation-Double-dip-Here-s-how-entrepreneurs-can-survive
Do you have some examples on how you may have placed your business spending habits on a diet? We would love to hear your ideas and tips and as always, you can reach us here or at our site: www.entrepreneurexpose.com.
The Entrepreneurial Mind
Stagnation? Double dip? Here's how entrepreneurs can survive.
By Jeff Cornwall, Guest blogger / August 17, 2010
Even the optimists are saying that we have at least two more years of economic stagnation. Other experts are warning of a possible double-dip recession.
There is even growing talk in some circles of America experiencing a "lost decade" in its economy. That refers to the 10-plus dismal years of economic doldrums suffered by Japan in the 1990s.
Recent employment and bank lending rate data seem to support a prolonged recession for small businesses.
So what does this "new normal" in our economy mean for entrepreneurs?
For startup entrepreneurs it means you need to be lean. There will still be new businesses forming, even if the economy takes a turn for the worse. Some of these new businesses will be opportunistic entrepreneurs who see ways to meet the needs created out of the dramatic changes taking place in our economy and society.
Others will be among the growing army of accidental entrepreneurs who are finding that starting something on their own has become the only viable way to make a living during these challenging times.
Whichever path leads you to start a new business, a successful launch will require bootstrapping.
There is very little money being invested in or lent to new small businesses right now, so be prepared to find creative ways to get your business off the ground without a lot of funding.
If you are already a business owner and have survived the past two years of economic turmoil, let me be the first to offer congratulations. Clearly you have found a way to continue to offer value to the market. You must have also been an effective manager.
Some businesses that have survived are hanging on by a thread. If that is the case for your business, continue to pay attention to the basics. Keep cutting overhead, pay down debts and take good care of the customers you have so you don't lose any more of them to stronger competitors.
Every small-business owner should continue to run his or her business cautiously and prudently. There will be more tough times ahead.
Look for growth opportunity
Over the coming months, more of your competitors will probably fail, and that presents an opportunity to attract new customers to your shop.
This can be an excellent time to expand and take advantage of a larger market share. If you do expand, continue to bootstrap and try to keep your use of debt to a minimum. Explore different economic tools available to help you conserve cash such as bartering. Investigate what barter organizations are in your area.
This is no time for excessive leverage because of the uncertainty of the economic outlook.
Whether you are a new entrepreneur or a seasoned business owner, more than ever before remember, cash is king. Given the uncertainty of the economy, entrepreneurs should try to keep enough cash on hand to cover at least 30 days of monthly expenses -- and up to 90 days of cash on hand is not a bad idea, either.
It's also important to keep one eye on the future. Eventually things will improve. And those who survive the Great Recession have a good chance of emerging in a stronger position. The survivors of today will become the market leaders during the recovery.
Submitted by Terry Brandfass
Monday, August 23, 2010
Tuesday, August 17, 2010
How to Barter Your Way Down the Aisle
By: Sloane Heller
KANSAS CITY, Missouri - Does your future father-in-law own an auto repair shop? Do you do web design? Does your fiancé repair roofs?
If you are getting married, you might be able to barter your way down the aisle.
There are a couple of ways to approach a trade. You can contact the person directly, price out your service and negotiate a deal. Or you can join a trade network, where instead of doing a direct trade you get a debit card. Depending how much you agree to give, you will get back in trades.
Event Videographer Patrick Lamb has done about a dozen trades over the years. He says there are two things you need to be aware of. First, the IRS still expects you to pay taxes, even on a trade. Second, make sure you accurately value the work you are doing and negotiate a fair trade.
"(With) any type of negotiation you want a win-win. If both parties are happy with the end result, you got an equitable trade. No one wants to feel like they've been taken advantage of," says Patrick.
Patrick says right now he'd probably shoot someone's wedding if they could fix his flat roof that's leaking into his kitchen.
BJ Taylor has been working with an exchange network for years and has also done his fair share of trades for weddings.
Even though he has to pay a commission to work with the network, it's easier.
BJ says trade is being used in the U.S. more and more these days because of the economy. He said bartering services on your wedding day can also make it a more intimate event.
"If you trade with someone one-on-one or through a network you develop a closer bond. You are on the same level as they are," he said.
BJ says there are so many services needed on your big day, you are bound to find something you can barter if you think hard.
Submitted by Terry Brandfass of ITEX-AZ
KANSAS CITY, Missouri - Does your future father-in-law own an auto repair shop? Do you do web design? Does your fiancé repair roofs?
If you are getting married, you might be able to barter your way down the aisle.
There are a couple of ways to approach a trade. You can contact the person directly, price out your service and negotiate a deal. Or you can join a trade network, where instead of doing a direct trade you get a debit card. Depending how much you agree to give, you will get back in trades.
Event Videographer Patrick Lamb has done about a dozen trades over the years. He says there are two things you need to be aware of. First, the IRS still expects you to pay taxes, even on a trade. Second, make sure you accurately value the work you are doing and negotiate a fair trade.
"(With) any type of negotiation you want a win-win. If both parties are happy with the end result, you got an equitable trade. No one wants to feel like they've been taken advantage of," says Patrick.
Patrick says right now he'd probably shoot someone's wedding if they could fix his flat roof that's leaking into his kitchen.
BJ Taylor has been working with an exchange network for years and has also done his fair share of trades for weddings.
Even though he has to pay a commission to work with the network, it's easier.
BJ says trade is being used in the U.S. more and more these days because of the economy. He said bartering services on your wedding day can also make it a more intimate event.
"If you trade with someone one-on-one or through a network you develop a closer bond. You are on the same level as they are," he said.
BJ says there are so many services needed on your big day, you are bound to find something you can barter if you think hard.
Submitted by Terry Brandfass of ITEX-AZ
Thursday, August 12, 2010
Short of Cash? Barter!
Every small business goes through periods when cash is tight. Not being able to pay your bills can be embarrassing to you and can ruin the good name you have worked so hard to build for your business. In some instances you can work with your creditors to extend terms as a short term solution to your cash problem. However, more and more small businesses are turning to barter as a method of avoiding cash flow problems in the longer term.
Bartering occurs when you exchange goods or services without exchanging money. An example of bartering is a plumber doing repair work for a dentist in exchange for dental services. That saves each business the cash they would have otherwise have needed to expend for those services, and they have the added benefit of building a good relationship with another local business.
Interestingly, one of unexpected added benefits of bartering is the relationships that are built between small businesses. This can a very basic strategic partnership. The bartering relationship fosters trust, support, and an interest in the other business prospering. Sometimes, especially when the businesses are complementary, the business relationship turns out to be an even bigger asset than the cash savings from bartering.
Do note, however, that bartering is not "free" money. The goods and services being bartered do need to be valued and declared on your income tax. The fair market value of goods and services exchanged must be included in the income of both parties. Income from bartering is taxable in the year in which you receive the goods or services. Generally, you report this income on Schedule C, Profit or Loss from Business Form 1040. If you are in a business or trade, you may deduct any costs you incurred in performing the work that was bartered.
In addition to forming individual relationships with other local businesses, you can also arrange exchanges through a barter exchange. Barter exchanges are middlemen for transactions and provide barter credits based on the dollar value of the good or service. The business can then use their credits to purchase goods and services from other members of the exchange. The exchange provides access to a network of actively bartering businesses.
The Internet has provided a medium for new growth in the bartering exchange industry. There are hundreds of bartering exchanges operating around the world, and more are opening their doors daily. Bartering can be particularly useful in dealing with countries that have limitations on movement of capital in and out of the country.
The list of items available for trade seems unlimited. There are vast possibilities from bartering for advertising to bartering for salaries, benefits and incentives for employees. Almost anything is available somewhere with the possible exception of utilities, taxes, and bank payments. And with the aid of an exchange, even though, they usually charge a fee of 10 to 15 percent of each trade, the time commitment on your part is negligible.
Before signing up for a trade exchange, here are some common sense steps you should take:
• Make a list of what you want to trade and the items you would be willing to accept in return. Choose a barter organization that deals in the items you are interested in trading.
• Ask for a referral list of clients and confirm that they have been satisfied with how their transactions have been handled.
• Find out how many clients and items the barter organization currently has.
• Check the prices for items being bartered to see if the organization is pricing them fairly.
• Find out where the clients from the organization are from. Distance may be a factor in transporting goods. Then, again, you may wish to offers your goods over a broader regional area. Many trade organizations are local, but are part of larger networks of exchanges, providing a wider base for trade.
• Find out what other services the barter organization provides for their percentage of the trade. Common services provided are management of the exchange, brokering the items offered for trade, consulting services and barter information.
• Compare the services offered by a variety of barter services before making the choice.
• Legitimate barter organizations are required to report barter income of each client to tax authorities. Do not do business with any barter organization that does not provide tax reporting.
• Check with the Better Business Bureau about any organization you are considering joining.
Bartering can be fun and profitable. Some people make it their primary means of doing business. In tight monetary times in particular, bartering can be a useful item to have as part of your financial management plan.
Submitted by Terry Brandfass of ITEX-AZ
Bartering occurs when you exchange goods or services without exchanging money. An example of bartering is a plumber doing repair work for a dentist in exchange for dental services. That saves each business the cash they would have otherwise have needed to expend for those services, and they have the added benefit of building a good relationship with another local business.
Interestingly, one of unexpected added benefits of bartering is the relationships that are built between small businesses. This can a very basic strategic partnership. The bartering relationship fosters trust, support, and an interest in the other business prospering. Sometimes, especially when the businesses are complementary, the business relationship turns out to be an even bigger asset than the cash savings from bartering.
Do note, however, that bartering is not "free" money. The goods and services being bartered do need to be valued and declared on your income tax. The fair market value of goods and services exchanged must be included in the income of both parties. Income from bartering is taxable in the year in which you receive the goods or services. Generally, you report this income on Schedule C, Profit or Loss from Business Form 1040. If you are in a business or trade, you may deduct any costs you incurred in performing the work that was bartered.
In addition to forming individual relationships with other local businesses, you can also arrange exchanges through a barter exchange. Barter exchanges are middlemen for transactions and provide barter credits based on the dollar value of the good or service. The business can then use their credits to purchase goods and services from other members of the exchange. The exchange provides access to a network of actively bartering businesses.
The Internet has provided a medium for new growth in the bartering exchange industry. There are hundreds of bartering exchanges operating around the world, and more are opening their doors daily. Bartering can be particularly useful in dealing with countries that have limitations on movement of capital in and out of the country.
The list of items available for trade seems unlimited. There are vast possibilities from bartering for advertising to bartering for salaries, benefits and incentives for employees. Almost anything is available somewhere with the possible exception of utilities, taxes, and bank payments. And with the aid of an exchange, even though, they usually charge a fee of 10 to 15 percent of each trade, the time commitment on your part is negligible.
Before signing up for a trade exchange, here are some common sense steps you should take:
• Make a list of what you want to trade and the items you would be willing to accept in return. Choose a barter organization that deals in the items you are interested in trading.
• Ask for a referral list of clients and confirm that they have been satisfied with how their transactions have been handled.
• Find out how many clients and items the barter organization currently has.
• Check the prices for items being bartered to see if the organization is pricing them fairly.
• Find out where the clients from the organization are from. Distance may be a factor in transporting goods. Then, again, you may wish to offers your goods over a broader regional area. Many trade organizations are local, but are part of larger networks of exchanges, providing a wider base for trade.
• Find out what other services the barter organization provides for their percentage of the trade. Common services provided are management of the exchange, brokering the items offered for trade, consulting services and barter information.
• Compare the services offered by a variety of barter services before making the choice.
• Legitimate barter organizations are required to report barter income of each client to tax authorities. Do not do business with any barter organization that does not provide tax reporting.
• Check with the Better Business Bureau about any organization you are considering joining.
Bartering can be fun and profitable. Some people make it their primary means of doing business. In tight monetary times in particular, bartering can be a useful item to have as part of your financial management plan.
Submitted by Terry Brandfass of ITEX-AZ
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