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Wednesday, December 26, 2012

Plan to Recession-Proof Your Small Business

According to a report from the U.S. Small Business Administration (SBA), 62% of small businesses are generating revenue (annual receipts) of less than $25,000.00 per year. That’s $25,000.00 in gross revenue, not profit.  Once expenses for overhead and other costs are deducted, the remaining profit can be as low as $9,000.00.  This means that more than half of all small business owners may not make enough to make ends meet. No wonder small business failure rates in the U.S. increased by 40% from 2007 to 2010.

There is no doubt that the recession has affected everyone in one way or another.  For many small business owners, the first reaction to dwindling sales is fear.  Fear has stunted growth in the economy resulting in limited hiring and expansion in some areas.  Fear and frustration has also caused some small business owners to throw in the towel.  It’s troubling because according to the SBA, small businesses employ more than half of the private sector worker force.  What has become painfully evident is that when small businesses fail, we all fail.

This is probably not the vision you had when you started your business.  But… you’re still here, you’ve survived, and while that’s a great accomplishment, it doesn’t resolve many of the issues that will improve your bottom line and ensure continued success.   

The big question is how has the recession affected your business?  Have you assessed any damage that may have occurred?  If your business was negatively impacted, do you have a plan to move from merely hanging in there to thriving and growing? What are you doing to promote your business and move it forward?  Do you think that marketing is important?

We specialize in helping companies with marketing and branding, as well as planning events, implementing programs and solving business problems with promotional items. 

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