| No matter type of business you operate you've | | | | and retired executives. Setting up such an |
| got to know how to keep your business alive | | | | advisory board of directors is really quite |
| during economic recessions. Anytime the cash | | | | easy, because most people you ask will be |
| flow in a business, large or small, starts to | | | | honoured to serve.Once your board is set up, |
| tighten up, the money management of that | | | | you should meet about once a month and |
| business has to be run as a "tight | | | | present material for review. Each meeting |
| ship."Pause Before PayingSome of the things | | | | should be a discussion of your business |
| you can and should do include protecting | | | | problems and an input from your advisors |
| yourself from impulse expenditures. We've | | | | relative to possible solutions. These |
| all bought merchandise or services we really | | | | members of your board of advisors should |
| didn't need simply because we were in the | | | | offer you advice as well as alternatives, and |
| mood, then we sort of "wake up" a couple of | | | | provide you with objectivity. No formal |
| days later and find that we've committed | | | | decisions need to be made either at your |
| hundreds of dollars of business funds for an | | | | board meeting, or as a result of them, but |
| item or service that's not essential to the | | | | you should be able to gain a great deal from |
| success of our own business, when really | | | | the suggestions you hear.Joining |
| pressing items had been waiting for those | | | | AssociationsBy all means, join your |
| dollars.Using ProfessionalsWhile you may | | | | industry's local and national trade |
| think you cannot afford it, be sure that you | | | | associations. Most of these organizations |
| don't "short-change" your self on | | | | have a wealth of information available on |
| professional services. This would apply | | | | everything from details on your competitors |
| especially during a time of emergency. | | | | to average industry sales figures, new |
| Anytime you commit yourself and move ahead | | | | products, services, and trends. If you are |
| without completely investigating all the | | | | given a membership certificate or wall |
| angles, and preparing yourself for all the | | | | plaque, you should display these |
| contingencies that may arise, you're skating | | | | conspicuously on you office wall. Customers |
| on thin ice. Regardless of the costs | | | | like to see such "seals of approval" and feel |
| involved, it always pays off in the long run | | | | additional confidence in your business when |
| to seek out the advice of experienced | | | | they see them.Free AdviceWhenever you can, |
| professionals before embarking on a plan that | | | | and as often as you need it, take advantage |
| could ruin you.Your FinancialsYour company's | | | | of whatever free business counselling is |
| books should reflect your way of thinking, | | | | available. Your local chamber of commerce or |
| and whoever maintains them should generate | | | | small business advisory will likely have |
| information according to your policies. | | | | numerous free publications. Most local |
| Thus, you should hire an outside accountant | | | | universities, and many private organizations |
| or accounting firm to figure your return on | | | | hold seminars at minimal cost, and often |
| your investment, as well as the turnover on | | | | without charge. Take advantage of the |
| your accounts receivable and inventory. Such | | | | service s offered by your bank and local |
| an audit or survey should focus in depth on | | | | library.Direction Is EverythingThe important |
| any or every item within your financial | | | | thing about running a small business is to |
| statement that merits special attention. In | | | | know the direction in which you're heading; |
| this way, you'll probably uncover any | | | | to know on a day-to-day basis your progress |
| potential financial problems before they | | | | in that very direction; to be aware of what |
| become readily apparent, and certainly before | | | | your competitors are doing and to practice |
| they could get out of hand.Advisory | | | | good money management |
| BoardsMany smaller companies set up advisory | | | | |
| boards of outside professional people. These | | | | at all times. All this will prepare you to |
| are sometimes known as Power Circles and once | | | | recognize potential problems before they |
| in place, the business always benefits, | | | | arise.In order to survive with a small |
| especially in times of short operating | | | | business, regardless of the economic climate, |
| capital. Such an advisory board or power | | | | it is essential to surround yourself with |
| circle should include a lawyer, a certified | | | | smart people, and practice sound business |
| public accountant, civic club leaders, owners | | | | management at all times. |
| or managers of businesses similar to yours, | | | | |