With the economy in the tank, it's no surprise that the number of bankruptcies—both personal and business—is soaring. As a small-business owner, even assuming you're not in danger of going bankrupt yourself, you can end up with some tricky decisions to make if your customers, suppliers, or other business counterparts go under.

The first thing to keep in mind if a business relation goes out of business is that there are a lot of different ways it can happen...

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By: Jonathan Weber, Founder, publisher, and CEO of New West

(March 19, 2009) Did you know you can get a Small Business Administration loan for up to $4 million with a payback period of 5 to 25 years? Additionally, the recently passed stimulus bill makes it easier for companies to get loans and refinance debt.

SBA lending, including 504 financing, will be a significant and integral part of the American small business recovery effort...

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By: Paul Diamond, Vistage Web Editor

Venture capitalists are simple people. But we're not necessarily forthcoming, so if you think it's hard to get a "yes" out of a venture capitalist, try getting a conclusive "no." The game is to string along entrepreneurs in case something miraculous happens to make them look better...

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By: Guy Kawasaki, Entrepreneur Magazine

Whenever I consider new strategic alliances or expansion opportunities, I look for three things: good partners, good financing and good management. Whether we're looking for investors, partners or vendors, we weigh their experience, expertise, track record and character. The quality of the businesses or individuals we align with directly affects our future...

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By: Robert Kiyosaki, Author of "Rich Dad"

Here's the tough news: the next six months (March-August) will be worse than the previous six months. And the good news, we should see the economic recovery begin around March 2010 based on the monthly trend in the U.S. Industrial Production Index...

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By: Paul Diamond, Web Editor, Vistage International

Sales managers are facing a set of challenges that they've never experienced before. They think their team is focused on generating sales, but they are completely distracted.

As a sales manager, you've had Human Resources preaching to you for years about the importance of work-life balance for your sales team. They've reminded you that studies show productivity increases when employees have balance between their work life and their personal one...

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By: Lee B. Salz, President of Sales Architects

The Chinese New Year began Jan. 26, and this year it's the year of the ox — an auspicious year for entrepreneurs and those of us who own small businesses.

"Gung hay fat choy!" is the Cantonese version of the greeting for the Chinese New Year, but it literally means "May prosperity be with you." That's certainly a timely hope for this year...

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By: By Rhonda Abrams, Business Columnist for USA Today

If something happens to you, the business must continue even if you do not. The only chance of that happening depends upon the right employees staying with the business. If you do not return to the business because of death or disability, your key employees will be very worried about their futures. Without you and without them, the business stands very little chance of continuing...

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By: By Bill Black, President & CEO of Exit & Retirement Strategies, Inc.

Past financial crises had very different effects on the real economy. Although the lessons of the past don't give much cause for optimism, they do provide hints on how companies should prepare this time around.

Financial crises occur with surprising frequency—in every decade in the past century there has been at least one big shock to a major economy's financial system. Judging from that history, the current upheaval will probably rank...

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By: David Cogman and Richard Dobbs

The cost of capital for companies reflects the attitudes of investors toward risk—specifically, the reward they expect for taking risks. If they become more averse to risk, companies have difficulty raising capital and may need to cancel or defer some investments or to forgo some mergers and acquisitions. So it's understandable that the current financial crisis has many executives concerned about what the price of risk—the cost of capital—will mean for their strategic decisions in the near term...

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By: Richard Dobbs, Bin Jiang and Timothy Koller

When I graduated from college, I hadn't yet selected a career. I then attended a social function and over heard someone I highly respected say, "In business, nothing happens until something is sold." It was from then on that I decided to dedicate my life's efforts to the "art and science" of selling...

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By: John F. McIntyre, Sr., Client Advocate Network

Economic recovery won't be on the horizon until the end of next year, according to Chapman University's annual economic forecast held Tuesday.

Most of the bloodletting in the county's job losses and falling home prices have already hit in 2008, with expectations the declines will lessen in the coming quarters before hitting a bottom by the end of next year, according to the forecast...

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By: Dan Beighley, Orange County Business Journal Staff Writer

Turmoil in the financial markets is wreaking havoc on many areas of the economy, including money markets previously regarded as safe havens. While Wall Street waits to see how the government's bailout plan plays out, many banks have already tightened their lending policies...

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By: Paul Diamond, Vistage International

SELDOM has corporate strategy been turned on its head so quickly. Barely a year ago, cash was a dangerous thing to accumulate: activist investors stalked companies, urging boards to return it to investors, to pay special dividends or to buy back shares. Ever since the 1980s the fashion had been to make companies as lean as possible, outsourcing all but your core competencies...

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By: Reprint from the Economist

There are five key concepts owner operators need to understand and accept in order to build and execute an exit plan for their businesses:

Concept 1
"Treat your businesses as you would your other assets and constantly work on improving its value." You may find it difficult to treat your businesses as an asset...

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By: A. J. Matsuura, CEO, EFM Capital Partners

The combination of Barack Obama's election victory, the current economic climate, and California's fiscal crisis have troubled many. This letter contains my comments on the potential impact and the immediate steps you can take now (listed on page 3) to help protect your family's income and assets...

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By: David Keligian, The Busch Firm

The U.S. Small Business Administration and Investment Division welcome your interest in obtaining SBIC financing for your company. Since 1959, Small Business Investment Companies (SBICs) have supplied equity capital, long term loans and management assistance to qualifying small businesses....

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By: Tim Porter, Director of Capital Resources for The Client Advocate Network, Information obtained from the SBA website

When the economy takes a turn for the worse, executives need to embark on two related courses of action. First, they should prepare their companies to ride out the economic storm. Then, they should get ready to take advantage of the recovery that will surely follow. This process requires seven essential steps...

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By: Edmond Freiermuth, Vistage Speaker, Finance & Business Advisor

To raise money for your business, you must decide whether you want to borrow money or sell ownership interests to equity investors. Often, you may not have many options -- the person with money to lend or invest will obviously have a lot to say about it. But you should understand the pros and cons of choosing one over the other...

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By: FORBES.com

Whether your business is doing well or taking a hit on the revenue side, just about everyone is seeing their costs of doing business go up. Even small and midsize companies whose sales and income have increased are being forced to tighten their budgets to deal with soaring expenses due to fuel and energy prices, higher taxes, and other outlays over which they have little or no control.

Luckily, there are other areas where you may be paying more than you have to, so you can cut your costs to keep your organization's financial status on an even keel. Many of these changes don't require a big sacrifice — and you might find yourself getting more while paying less.

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By: Debra Littlejohn-Shinder, Author and Technology Consultant

In the first half of 2008, Congress passed several tax changes that will impact individual and business taxpayers. These changes were primarily driven by the meltdown of the subprime mortgage market, high gasoline prices, and the push for alternative energy sources. Here’s a quick explanation of the tax changes so far this year...

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By: Ted Cohen, Vistage Member & Financial Advisor

To all the usual reasons that small businesses are put up for sale - personal problems and personnel squabbles among them - add economic woes this year. But even as for-sale listings rise around the country, so is buyer interest.

"When economic times get tough and people can't find a job, they will go out and buy a job," said Ronald Hottes, president of the Business Team, a broker in Torrance, Calif.

The problem for owners is that prices appear to be softening...

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By: The New York Times

The 2008 presidential election will offer small business owners a choice of two very different approaches to addressing their top concerns - the cost of health care, energy and federal taxes.

John McCain's campaign says a key to faster economic growth is helping small businesses.

The presumptive Republican nominee released a "Jobs for America" plan recently that aims to make it easier for small businesses to grow because they create the majority of jobs in America...

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By: Brian Tumulty, Gannett News Services

There is no doubt that banks have been hit hard by today's economic conditions. Some banks have been hit harder than others but only a handful will actually fail. Regulators do a good job watching over underperforming banks and are quick to arrange marriages between healthy and weak banks.

In the few but very visible cases when a bank does fail, depositors are protected through the FDIC. This article outlines FDIC insurance, how they are protected and to what limits...

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By: Greg Arbues, Founder of Client Advocate Network Information gathered from the FDIC

Whittier Hearing Center Inc. has endured hard times before.

Eight recessions have come and gone since the hearing care company opened its doors in 1955. Even though the economy is souring again, the company's owners expect that recent investments in staff education and equipment upgrades could mean higher sales this year.

"We've been through these recessionary periods many times," said Mary Ann Gilbert, director of audiology and co-owner of the business, which offers tests, hearing aids and ear protection gear. "We survive by being very value-focused for the patients. That helps us because the patients trust us and we get increased referrals from them and the medical doctors in our community."

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By: Cyndia Zwahlen, an L.A. Times Reporter

1. Building the niche

All buyers of companies look for the seller who has carved out a powerful niche in which to do business. The focused niche player has strong margins, is more profitable, and has greater barriers to competitive entry.

A+ companies have overall profitability in the range of 18 percent plus, as a percentage of sales, and sometimes go as high as 25-30 percent. They are often dominant players selling their products in their particular focused market - and they usually offer some products no one else does. They typically have a defined business category which they understand well - and this gives them the ability to be first with the changing technologies and trends deemed desirable in their business segment.

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By: Deborah Douglas, Vistage Speaker and President of Douglas Group, a private investment banking firm

The Structured Sale is a method of selling capital assets--particularly real estate and closely-held business interests--in a manner that allows tax deferral as prescribed under the installment sale method of reporting.

The Structured Sale is different from a traditional installment sale because it draws on methods long used in the structured settlement industry to assure payments for the victims of catastrophic injury claims.

To read case study click on link below

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Content provided by: Cliff Brown
Capstone Bay

Raising capital for your company may seem like a daunting task, but the challenge is less formidable if you follow some time-tested, effective dos and don'ts.

DO'S

1. Always raise more capital than you think you need. Raise enough capital to create true "dry powder" -- that is, money that goes beyond your immediate requirements. You should raise sufficient capital to meet your company's needs for 18 to 24 months. Actual capital needs are often greater than projected, and going back to the well is one of the most expensive ways to raise capital because it is usually done under less than favorable circumstances.

To read the rest of the DO's, click on link below

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DON’TS

1. Minimize risk. There are two principal components to accomplishing this objective.

• Do not personally guarantee company obligations unless you absolutely have to do so. In most cases, if your company has a track record you won't have to guarantee capital commitments. If it is requested, keep looking. If you do have to extend a personal guarantee, negotiate up-front the conditions upon which the guarantee will be either partially or totally released (usually certain operating or financial benchmarks) at some point in the future.

• Never bet the ranch. No individual deal is worth jeopardizing the company. Limit and isolate risk to the extent possible.

To read the rest of the DON'Ts, click on link below

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By: Brad Bulkley
Bulkley Capital & Vistage Speaker

This section addresses issues and topics related to the money side of the business; accounting, tax, banking, finance, forecast, investments, wealth management, etc.