As losses mount at American banks and the pain of the credit crisis spreads from housing and finance to the broader economy, many small companies complain it is increasingly difficult to obtain loans.
Tighter credit could not only help to push the United States into recession, but prolong the downturn as ideas for new businesses get stymied once entrepreneurs sit down with local bank managers, small business representatives warn.
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Burnout beckons for those starting businesses
After more than a decade as a project manager in the tree care industry, Tim Scherpenisse was suddenly out of work.
Two years later, he is an economic forecaster, strategic planner, marketing director and human resources supervisor.
Specifically, he is a small business owner. And the transition has not come without challenges.
"It's an obstacle not to let the business run you. If you're not careful, it can consume you," said Scherpenisse, owner of New Life Arboricultural Services in Grand Rapids.
Press Photo/Dianne Carroll BurdickTim Scherpenisse, owner of New Life Arboricultural Services, said running the business will consume you if you are not careful.
Scherpenisse is among a growing number of Michigan workers forging their own path in a shifting economy that has suffered eight years of job losses and now has the nation's highest unemployment rate at 8.5 percent.
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Business Continuity: Secure small business storage on the Web?
It's mid-hurricane season where I live, and my thoughts have been turning (as they so often do) to disaster recovery for small business. We should all have learned by now that even a comprehensive backup can be inadequate if it's stored in a filing cabinet in the front office. No, for better protection you need to keep a copy of your files someplace safe -- or at least someplace not likely to be hit by the same event that created the need for the backup.
I've been trying a couple of simple solutions for backing up my critical data. The first is SpiderOak, a system the company describes as, "Your complete online backup, storage, access and sharing solution." A free account comes with 2GB of online storage, with more available for license on a monthly basis. The second is Microsoft's Live Mesh, an extension of your desktop onto the Web. There are similarities between the two, but there are also differences that might make one or the other a better choice for your needs.
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Starting a Small Business in a Bad Economy
Smart entrepreneurs can be successful even in tough times
Things have been a bit slower than usual over at the Community Business Partnership, a resource for small companies in Springfield, Va. As Barbara Wrigley, an executive at the partnership, guesstimates it, there's been a 10-to-15 percent drop in folks coming in for information about starting new businesses. "I feel like people are being a little more risk averse these days," Wrigley says.
It's a natural reaction given all the scary economic headlines, but slowdowns don't have to be barriers to starting new enterprises, experts say. After all, Bill Gates and Paul Allen didn't wait for the recession to pass before launching Microsoft in 1975. And plenty of would-be entrepreneurs aren't waiting for today's economy to improve either: Of the approximately 3,000 job seekers—mostly managers and executives—surveyed by outplacement firm Challenger, Gray & Christmas, 7.2 percent said they were starting their own business in the first quarter of 2008. Last year's annual average was 8.1 percent. "The bottom line is anytime is the right time [to launch a venture] if the opportunity is correct and if you as the entrepreneur have correctly assessed and shaped the opportunity," says Dennis Ceru, who teaches graduate courses in entrepreneurship and business strategy at Boston University and Babson College.
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Surviving a Seasonal Business
It takes a year-round effort to maximize profits in your peak season. Here are 4 principles to get you there.
Seasonal business owners are often envied as having the ultimate gig: They work hard for the few months that form their peak season, then sail through the rest of the year with their feet up and a wad of cash in hand. Sound like the ultimate dream? Then it's time for a reality check:
Running a seasonal business requires year-round work and tough self-discipline. Behind every successful seasonal business is an entrepreneur who's willing to work twice as hard and twice as smart as the conventional business owner.
"Like any business or project in life, the outer results mirror the inner world of the individual at the helm," says Terry Kyle, author of400 Latest & Greatest Small Business Ideas. Kyle recommends these four tips for running a tight ship and guiding your seasonal business through the inevitable rough waters ahead.
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Lenovo Builds Notebooks for SMBs
Small business owners are constantly on the go and always looking for the chance to squeeze in a few more hours of work. That makes them perfect candidates for a notebook computer.
In a move designed to zero in on the SMB-notebook love connection, Lenovo today introduced the SL ThinkPad line, which the company says was designed specifically for smaller companies. The SL300, SL400 and SL500 are designed to accommodate a mobile work style, add a touch of multimedia sizzle and sport stylish good looks.
According to Charles Sune, worldwide segment manager for ThinkPad SL Series, the new small business line delivers high-quality, affordable prices and reliable service and support. Sune said SMBs are the fastest-growing segment of the notebook market.
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Tips For Small Business Owners
Finding A Loan That Works For You
With the recent credit crunch, small business owners are having a tough time getting loans. Colleen DeBaise, Small Business Editor for SmartMoney.com, has some tips for funding your business in tough times.
If you're a small business owner who's been turned down for a loan by a bank, don't panic - you do have other options. First, consider a microlender. "Microlenders are non-profits," says DeBaise. "They're generally funded by charitable institutions, government grants." Microlenders usually give out small loans - anywhere from $5,000 to $25,000. You might receive some financial training as well, but DeBaise considers microlenders a great option.
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