Wobbly banks - what does this mean in your steps to starting a small business? http://www.start-up-a-business.com/Article-Wo... The FDIC seems to admit in this article that there are more banks that really should be shut down, but the FDIC doesn’t want to hurt the public’s confidence in the banking system, so they are going to take it slow on bank closings, even though it will cost them more money in the long-term.
Click on this link for the article:
http://abcnews.go.com/Business/WireStory?id=8905228&page=3
What does this article mean for those starting a small business? It seems deposits are protected up to $250,000 by the government. But, what about your lines of facility for your business?
Your loan is regarded as an asset of the bank and should a bank fail, its assets including its loans book is sold. The new bank may have completely different guidelines and lending policies. Not all banks are entirely comfortable with small business start ups, especially in these challenging economic times.
You'll need to understand your new banker's criteria on loans to small business, especially if you are a small business start up. Does your agreement provide for annual reviews? Check this and understand their criteria before your review.
If you do have a new banker, make a point of ensuring you do understand their lending and security criteria and importantly, work to strengthen your balance sheet. Is your loan subject to covenants? Check this now so that when it is time for your review, your numbers well and truly satisfy all the covenants. Covenants are like certain financial ratios you and your business must comply with, else the loan requirements are breached. It's serious if the covenants are breached. If you don't know what this means, take your loan agreement and seek advice from an accountant.
One of the most important steps to starting a small business is securing stable and reliable lines of credit. Cash flow is KING! Any disruption to your facility lines means disruption to cash flow. If you can't pay as a result of a temporary reason such as, your facility lines are under review or you have to reapply, suppliers, frankly, don't care. They will just stop providing the goods.
...and what happens if you don't have goods your customers want? ...Your customers will just source the product from your competitor. Now, sending your customers to your competitor is simply not a good idea.
What do you do now, having read this article?
1. You can't control whether or not your bank will fail, but you can control the state of your business
2. Check the requirements of your small business loan. What are the financial covenants if any?
3. Understand the bank requirements of your financial performance and put in place, now, the strategies so that you meet the stipulated criteria. With banks, there's no excuses. If you have conditions you need to meet - just make sure you meet those criteria.
4. More bank failures mean instability, uncertainty and a lack of confidence. Consumer sentiment drives the economy. Look at your plan for the next year and trim your sails based on what you've learnt in this FIDC announcement.
5. It looks like the economy's not out of the woods yet. Remember, cash flow is the life blood of business. In your steps to starting a small business, plan always to have a reliable source of free cash flow.
For more tips on steps to starting a small business, visit www.small-business-start-up.com
To your every success
Gen Yan-Colebourn B.Comm.,ACA, FTIA, JP, Dip.Bus.(Franchising)
Author, Chartered Accountant, Business Advisor
www.start-up-a-business.com
Starting a small business| If you want to create a million dollars, you either start a business or you invest your capital.
How Start A Business - Golden Rule No 1 http://www.start-up-a-business.com/Article-Ho... Worried and don't know where to start?
Here's the absolute number 1 Golden Rule when starting a small business.
Always begin with the end in mind. This will drive your culture, your strategy, who you work with and will give you the reason to go to work when times are tough. Click on the link to read the full article.
A message that will truly lift your heart! http://www.start-up-a-business.com/article_Fi... It's easy to lose yourself in "doin' it, doin' it, doin' it", whether it's work, shopping, cleaning, stress, fatigue - it just never ends. I'd like to share with you the perfect message to find yourself again and rediscover the joy that living can bring. Here is a two minute heart warming and uplifting movie that you'll want to send to your loved ones. To your every success! Gen www.start-up-a-business.com P.S. Do forward this email to friends and family you cherish!
Jack Canfield on the Law of Attraction, When Success is Slow, What Can You Do? http://www.start-up-a-business.com/article_wh... Jack Canfield, the best selling author of Chicken Soup for the Soul, talks to us on the Law of Attraction and what to do when success is slow. He recommends a daily journal of gratitude and daily meditation. He also reminds us to do daily the 5 things to action our number 1 goal. That way, every day, we move closer towards our goals.
Lessons from the Oracle of Omaha 2009. Berkshire Hathaway 2009 AGM. http://www.start-up-a-business.com/article_le... I attended Berkshire Hathaway's AGM on Saturday. It was wonderful
to read about the AGM in the Wall Street Journal and the New York
Times and be able to comment as to its accuracy.The event was a
You need to be who your business needs you to be. http://www.start-up-a-business.com/article_yo... I was taken by this paragraph I came across in Wayne Dyer's book.
It is just so appropriate for those starting a business.
Who will thrive in 2009? http://www.start-up-a-business.com/article_wh... Are you starting a small business and wondering
how you'll fare in these challenging times? For
those starting business, you're likely to be
concerned about growth prospects for the next
couple of years.
The highlights in the report
http://www.start-up-a-
business.com/article_who_will_thrive_in_2009.asp
inform although there'll be
a significant slow down in the economy, it seems
there is likely to be growth in certain
industries.
http://www.start-up-a-
business.com/article_who_will_thrive_in_2009.asp
I read this article recently. Economic Downturn:
Who will thrive in 2009?
This is a report from IBIS who have undertaken a
special macroeconomic study.
You may find it useful in planning your
strategies for the next year.
To Your Every Success!
Gen Yan-Colebourn B.Com., ACA, Fellow TIA, J.P.,
DipBus(Franchising)
Author, Business Consultant and Chartered
Accountant
http://www.start-up-a-business.com
P.S. Starting a small business does not need
to be difficult with the easy steps
in this business guide book
that has everyone talking.
Starting a Small Business? The richest man on earth shares his business goals http://www.start-up-a-business.com/article_Th... For those who are just starting a business, it's worth learning what the "Oracle of Omaha" has to tell us about managing businesses. Buffett is worth listening to, as, afterall, he is the richest man on the planet. His letter, is, as usual, written in a friendly, neighbourly tone. He reminds businesses that the watchword in these times is " In God we trust; all others pay cash." This article relates Buffett's thoughts to small business. To Your Every Success! Gen Yan-Colebourn B.Com., ACA, Fellow TIA, J.P., DipBus(Franchising) Author, Business Consultant and Chartered Accountant www.start-up-a-business.com
3R's to enhance your business reputation http://www.start-up-a-business.com/article_Th... When starting a small business, your integrity
and authenticity are paramount. These crucial
qualities result in repeat custom and success.
Master the 3 R's of Business ethics when you're starting business.
To Your Every Success!
Gen Yan-Colebourn B.Com., ACA, Fellow TIA, J.P.,
DipBus(Franchising)
Author, Business Consultant and Chartered
Accountant
www.start-up-a-business.com
Customers Love These Words http://www.start-up-a-business.com/Customers_... When starting a small business, your most valued asset are your customers. One of your earliest skills, when starting your own business is to learn to listen and truly hear what your customers are telling you.
http://www.start-up-a-business.com/Customers_Love_These_Words.asp
The greatest skill you'll learn in how to start business is customer focus. It's not just about providing great service, it is also about identifying their needs and identifying how your small business can satisfy that need.
Here are words customers LOVE. These tips are especially relevant when you are starting your own small business.
http://www.start-up-a-business.com/Customers_Love_These_Words.asp
Use these 10 phrases in your daily lexicon
with your customers. You'll find the most important
of these words is......
The Power of Small Tweaks http://www.start-up-a-business.com/small_twea... For those starting a small business, this is worth
reading.
It reminds us that when you're starting a business,
success is a result of small incremental actions.
The term used in Management Consultancy is a Japanese
word
Cashflow - Get Your Cash Happening Earlier http://blogs.myspace.com/index.cfm?fuseaction... Starting a small business can be tricky.
The ONE THING you need to focus on,
just the ONE THING is CASH FLOW.
At this time of the economy, we've heard it all
before,
