Entrepreneurial Survival Tips

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