Small businesses with less than 500 employees constitute almost half of American small-business employment and 43.5 percent of total GDP, and as they face an existential threat from the economic recession they’re faced with an overwhelming challenge in the form of financing. In the past, most business financing was tied to credit cards and personal loans, but that a “culture shock” has struck many businesses hard. Today, many business owners find themselves seeking more affordable financing options that go beyond traditional bank loans and credit cards.
The first thing you need to do if you’re considering starting a new venture is to get your business plan together. Your business plan should be comprehensive, identifying your target market, your financials, marketing strategy, business objectives, and critical metrics. A business plan is a road map to success, one that will guide your business through rocky patches and encourage you to stay focused on your mission.
Businesses in jeopardy of going under (or failing) are often in the midst of a growth slowdown and in such times companies are usually willing to take risks to keep customers and boost their share of the market. Entrepreneurs are often highly skilled in negotiating deals and are familiar with business models and market niches. But the most important ingredient to the success or failure of a business is the ability to know and understand how the economy works. Economists are nearly as baffled about the state of our economy as entrepreneurs are. For many working class Americans the daily grind of running a business is becoming a distant memory due to the state of the economy.
While it’s tough to see the point of optimism when it comes to the state of our economy, the truth is that businesses need customers more now than ever. Online shopping has become a norm, which means that more people are doing more shopping online than ever before. As the average income of families has decreased over the years the need for businesses has as well. The truth is that a successful business isn’t a simple equation. It takes a great deal of organization, knowledge, creativity, and the ability to work hard.
Unfortunately, the business world isn’t going to slow down just because there are more businesses online. While online shopping continues to grow, businesses have to adapt to survive in a rough economy. Some business owners are cutting back on their operations in an effort to survive, but others have already done so. In order to succeed in a difficult economy, entrepreneurs are going to have to embrace change and innovation in all aspects of their business operations.
An example of an innovation that is changing the face of business is the introduction of a business panda. The pandemic – better known as “The Four Horseman of Finance” – is changing the way banks do business. Unlike the normal “banking on a large scale”, which typically involves hundreds of businesses all trying to figure out how they can best serve their customers, this new concept makes it much easier to make financial decisions. Instead of banking on a wide variety of internal business plans, the new trend relies on the advice of a small business with an online presence. In fact, many of these businesses have built up a large customer base through their online presence that allows them to answer customer questions all day long.
Another innovation in business is a business blueprint system that helps small business owners map out their future success. This is particularly beneficial to small businesses that may be struggling to find an edge over larger businesses in their region. With the help of a business blueprint, owners can determine which areas of business they should focus on and then map out a strategy to achieve those goals. For example, if an entrepreneur wants to offer services in a particular part of town, he or she can find a business blueprint that focuses exclusively on that area.
Innovation is happening everywhere. Many small business owners are simply unwilling to adjust to changes that occur in their industry. The result is that many small business owners are not growing their businesses as rapidly as they would like and are instead settling for larger profits than they want to work for. As a result, the number of businesses that are stagnant is on the rise, while those that are thriving are fewer.