Small Business Economic Indicators

When you’re a small-business owner, issues like whether you can afford to give your assistant manager a raise or whether your dinner bread will be delivered on time loom larger than the trade deficit and crop results. Yet, the nation’s employment outlook factors into your hiring decisions and the truck that delivers your bread runs on gas — so keeping an eye on the bigger picture can help you avoid cost surprises. “If [you know] consumers are spending more in October, that might give you a bit more confidence if you’re a retailer going into the Christmas season,” says Chad Moutray, the Small Business Administration’s chief economist.

While the economic recovery is still tentative — and credit remains tight — small-business owners could help themselves in 2010 by monitoring the macroeconomic picture. Already, members of the Board of Governors and the presidents of the Federal Reserve Banks, have projected that the U.S. economy will expand between 2.5% and 3.5% this year. Meanwhile, the unemployment rate is expected to fall to between 9.3% and 9.7% from November’s rate of 10%, and economists from Morgan Stanley expect that a more sustainable recovery will sink in, as the financial markets improve, risky assets continue to fetch higher prices, and bank lending improves.

In the absence of your own economist or strategic planning office, what indicators should you keep an eye on? Here are five that often matter most to small firms.
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Obama Outlines $30 Billion Small Business Loan Proposal

By Christine Lagorio | Feb 2, 2010

At a town-hall meeting in New Hampshire, President Obama outlined his plan to increase hiring in small businesses by granting local banks $30 billion in loans.

Naming job creation as his priority for 2010, President Barack Obama pitched his $30 billion loan program proposal Tuesday to help small businesses grow their companies through increased hiring.

In Nashua, New Hampshire, Obama said he hopes to take money repaid by Wall Street banks as part of the $700 billion bank bailout known as TARP to create the Small Business Lending Fund, which would provide capitol to community banks to spur economic growth on Main Street.

“These are the small, local banks that work most closely with our small businesses – that provide them their first loan, and watch them grow through good times and bad,” he told a crowd of more than 1,500 at a Nashua North high school.
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7 Rules for Building a Successful Business

There are many rules associated with establishing and running a successful business. Indeed, there are a number of things you can do to contribute to your success as a business. But here are 7 basic rules that you can use when building a successful business. Keep reading to discover great rules to use to succeed in business.

1. Don’t let your accounts receivable get out of control. First of all, it is vital to have an organized accounts receivable department. You need to know who owes you what, and you need to know who is making payments. You also need to make provisions for following up on invoices that owe you money. An efficient workflow needs to be maintained so that you are receiving payments in a timely manner for your goods and services.
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Recession Over? You’re Having a Laugh

Following the Treasury’s announcement that the Gross Domestic Product (GRP) increased by 0.1% in the last quarter of 2009, how many of us really believe that this piffling improvement over a three months period proves that we are now out of recession and 2010 will herald a return to the halcyon days of full employment and bulging order books. Probably very few - at least amongst those who are not confined to a mental institution.
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Surge in Loans is Unlikely From Small-Business Plan

President Barack Obama’s plan to divert $30 billion of federal bailout funds into new small-business loans will prop up thousands of struggling entrepreneurs but is unlikely to break the lending logjam.

“This is a good start. But it’s a small start,” said G. Michael Moebs, chief executive of Moebs Services Inc., a Lake Bluff, Ill., research firm specializing in U.S. banks.

The $30 billion in Troubled Asset Relief Program funds targeted by Mr. Obama represent about 4.3% of the $700 billion in small-business loans held by U.S. banks and savings institutions, according to the Treasury Department. As of November, the 22 largest banks that got capital infusions through TARP had $257 billion in small-business loans, the Treasury said.
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Accounts Receivable Factoring: Your Tool For Unlimited Sales

Companies with big ambitions will need access to financing that will enable them to realize their goals. It takes money to generate business. Consistent marketing, the use of high quality materials and excellent service requires cash, cash that has become increasingly more difficult to secure. Bank loans have become nearly impossible to qualify for. This has been devastating to companies that had come to rely on such funds to keep their businesses going. One alternative that some companies are beginning to investigate and utilize is accounts receivable factoring.

Receivables factoring is an extremely effective and fast small business financing option. It allows companies to raise a significant amount of capital very quickly. Within 7 days, and many times within 24 hours, a business can have the money they need to stay float or even expand. This is an excellent option for those looking to maximize sales. It provides the capital needed to pay for advertising and then to fulfill those orders secured from those marketing efforts.
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Finding A Factoring Company Made Easy

Invoice factoring can be an excellent way for companies to generate capital. In the past, bank financing was the primary way that a company would raise money whenever it needed to. Even then, if a company lacked a significant amount of history and/or had poor or even average credit it was very difficult to receive a loan. Today, it has become even tougher. Banks are simply not willing to loan out money at rates that had in the past. This has been devastating to many businesses, especially those that had come to rely on such monies. Fortunately there are still options. Invoice factoring is one of the very best commercial finance alternatives. It allows companies to raise money in a very short amount of time, typically even within 24 hours.
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Accounts Receivable Factoring: A Perfect Cash Flow Solution For Any Business

Accounts receivable factoring is an option that has recently become much more attractive to a variety of businesses. Because it has become much more difficult then ever to qualify for a bank loan, companies are being forced to search out alternative financing methods, sometimes to stay afloat. Invoice (receivables) factoring is much easier then bank financing and happens much more quickly. In the majority of cases, most transactions can be completed within 7 days, some in as little as 24 hours.
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Improving Your Company’s Cash Flow With Invoice Financing

Invoice financing is a great way for companies to improve their cash flow without taking on new debt or having to apply for a bank loan. In the past, these were two of the primary ways that businesses raised capital. Many depended on angel investors or banks. With much of this money having dried up, companies are being forced to look for creative, alternative ways to raise money. Invoice financing qualifies on both fronts. Businesses that in the past may have passed on the opportunity to utilize this form of commercial financing simply because they didn’t have to consider it, are beginning to see the benefits of utilizing it.

Invoice financing is a dependable and fast way for a business to raise capital. Companies sell their invoices or accounts receivables to businesses called Factors. These Factors will purchase the invoices for 70% to 90% of their full value. These monies are paid right away which allows businesses to generate capital in a matter of days instead of waiting the 30-60 days that they would normally have had to if the client paid according to the invoice arrangement.
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The Advantages of Factoring Over Other Types of Business Financing

There are a variety of financing options for companies that need capital. Angel investors, bank loans, venture capital and credit cards are all available options. While each of these has their advantages, there are also many disadvantages associated with them. Businesses must consider these before choosing one of the above options. Amongst the most notable disadvantages, include the fact that it may be difficult for companies to qualify for a number of these types of loans. In the case of credit cards, the astronomical interest rates can cause a business so much money that it becomes very difficult for them to repay. One option that may not be used as often as it should, and which can be an especially advantageous small business financing option, is factoring.
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