The BizFilings blog covering business tips and trends.
Transitioning a Small Business into 2011
Published on Dec 1, 2010
Read "Transitioning a Small Business into 2011' at 'Time to Start Up,' the small business blog by Biz Filings.
Although the economic recession is beginning to improve, albeit slightly, banks are operating with tighter lending policies and credit from alternative sources is equally difficult to come by. The worst recession since World War II is understandably reluctant to be dismissed.
"However optimistic you may be about your business, you need to let the overall economy temper your expectations," Scott Shane, an economics professor at Case Western Reserve University, told Entrepreneur magazine. "You need to assume that the recovery is going to be tepid and plan accordingly."
Meanwhile, a recent survey by the National Association for Business Economics projected that the economy, although growing, will not exceed a rate of 2.6 percent through 2011.
In looking forward to next year, small businesses should take a look back at their 2010 data and operational processes. Chances are, whatever worked this year will likely work next year as well.
Given that employee departures are expected as the job market improves, holding on to workers that have held back the company may not be worth it, especially in a tight financial situation.
"High-maintenance, low-margin customers are an impediment to deploying time and resources more profitably," says small business consultant Joseph Fulvio. "Get rid of them."