Ten Ways to Safeguard Your Small Business

The current upheaval in the financial sector has many of us longing for the days when we were worrying only about an impending recession. As the U.S. economy continues its spiral to rock bottom and as the stock market remains highly unstable despite the passing of the $700 billion "rescue" plan, our situation is drawing comparisons to the Great Depression. If you're a small business owner, you are likely wondering if you'll become a casualty of these economic end times.

You do have a fighting chance, but you need to stop the handwringing and start taking aggressive action to safeguard your business.
"Nothing is more stressful for a small business owner than talk of economic catastrophe," says Ed Hess, Professor of Business Administration and Batten Executive-in-Residence at the Darden School of Business at the University of Virginia and coauthor along with Charlie Goetz of the book So, You Want to Start a Business? 8 Steps to Take Before Making the Leap.

"You start thinking about everything hanging in the balance, and if you aren't careful you let your worries overwhelm your common sense. Rather than taking steps to safeguard your business, you find yourself paralyzed by anxiety."

The authors stress that financial doom and gloom does not mean certain death for your small business. Once you accept that you're going to have to work very, very hard—and that no one is coming to your rescue with a taxpayer-funded bailout package—you'll be ready to come out swinging.

"You have to remember who's in control," says Goetz, a Distinguished Lecturer in Entrepreneurship at Goizueta Business School, Emory University. "It's you. And only you. As a small business owner, you should certainly know what's going on in the economy, but remember that you are the captain of your ship. And if you take the proper action, you can steer your business around this economic mess."

Hess and Goetz provide a few small business safeguarding tips based on their decades of experience teaching and advising entrepreneurs:

1. Obey the Golden Rule of Small Business: Protect your credit! As the credit crunch worsens, it is critical that you make sure your business has the best credit possible to ensure you can get a loan if you need one. Make absolutely certain you are paying your bills on time. Don't let anything fall through the cracks. If you are having trouble making a payment, let the company or bank know why. If there is a dispute on a payment, get something in writing that says you aren't to blame. Being turned in to a collection agency will tank your credit score, something you absolutely can't risk.

2. You can't show your employees the money, but you can show 'em the love. You need your employees to be on your side now more than ever.

Sign up for ITworld's Daily newsletter
Follow ITworld on Twitter @IT_world

• Email
• Print
• Share
  • Slashdot
  • Digg
  • Stumble
  • Reddit
  • Newsvine