Home Back Issues April 2008 Five tips for tough times

Five tips for tough times

| Print |  Email
Archives - April 2008
Tuesday, April 01, 2008

 

money.jpg

Even though the economy is sputtering, the last thing small-business owners should do is panic. “You can actually take the opportunity of a downturn, when you’re not as busy, and re-strategize your business looking for new opportunities.” says Harry DeWolf, Portland district director of the U.S. Small Business Administration. Here are his top five tips small businesses should follow when economic times get tough.

1. Don’t lose track of cash flow. Cash is king — especially in a down economy. Income statements and balance sheets are fine, but they are telling you what happened in the past, not the future. Use a cash-flow report to project your cash flows at least three months in advance.

2. Eliminate nonessential expenses as much as possible. Ask yourself: Is that activity necessary? Will this activity create profit? If not, don’t do it. Also consider cutting personal spending. Simple reductions can make a difference.

3. Don’t build up inventory. Don’t get bogged down with excess merchandise and inventories tying up your cash. Convert your overstocked inventory into cash by using sales and promotions and consider selling items through other channels, such as the Internet.

4. Don’t take on new debt. Think long and hard about taking on more debt, and don’t be in a big hurry to pay off debt early. Instead, focus on building cash reserves.

5. Don’t let accounts receivable get too big or too old. Get aggressive with collections. When business is good, companies tend to become lazy about collecting on receivables. Being tough with customers may be unpleasant, but it’s an important safeguard against the effects of a prolonged economic slowdown.                       

EVAN CAEL


Have an opinion? E-mail This e-mail address is being protected from spambots. You need JavaScript enabled to view it

 

More Articles

Knight Vision

October 2014
Thursday, September 25, 2014
BY VIVIAN MCINERNY

Travis Knight wants to release a movie a year. Can he pull it off?


Read more...

The Backstory

October 2014
Thursday, September 25, 2014

In our cover story this month, Wendy Collie, CEO of New Seasons Market, and Kim Malek, owner of Salt & Straw, discuss their rapidly growing businesses and Portland’s red hot food scene. The conversation provides an interesting lens through which to explore trends in the grocery store and restaurant sectors.


Read more...

Grape Expectations

October 2014
Thursday, September 25, 2014
BY HANNAH WALLACE

Well-financed outsiders from France and California are buying up vineyards and wineries in the Willamette Valley.


Read more...

Semiconductor purgatory

News
Monday, October 06, 2014
roundup-logo-thumb-14BY LINDA BAKER | OB EDITOR

Intel's manufacturing way station; Merkley's attack dog; Diamond Foods gets into the innovation business.


Read more...

Shipping News

September 2014
Tuesday, August 26, 2014
BY JENNIFER MARGULIS

In 2012 The Dalles, a city of some 14,400 located 75 miles east of Portland and often seen as the poor cousin to adjacent Hood River, completed a massive project to revitalize its dock.


Read more...

Downtime

September 2014
Wednesday, August 27, 2014
BY JESSICA RIDGWAY

How State Representative Julie Parrish (House District 37) balances life between work and play.


Read more...

A Recipe for Success

October 2014
Thursday, September 25, 2014
BY LINDA BAKER

Two businesswomen, two iconic food brands and one food-obsessed city. We thought this sounded like a recipe for good conversation. So in late August, Oregon Business sat down with Wendy Collie, CEO of New Seasons Market, and Kim Malek, owner of Salt & Straw, to discuss their rapidly expanding businesses and Oregon’s trendsetting food scene.


Read more...
Oregon Business magazinetitle-sponsored-links-02
SPONSORED LINKS