How To Save Your Business During A Economic Depression

Small Business are experiencing continued challenges. When a business owner faces a severe slowdown in cash flow and receivables, the options are usually limited to bankruptcy or a closure of a business. Large corporations have internal counsel and resources. Who can the owner of a smaller company turn to?

While a supposed recovery is underway, this is not evident for small business owners as debt levels increase and accounts receivable slow down.

Historically in previous recessions, what created jobs in a recovery was small business. It is widely accepted that the under 100 employee business is the lifeblood of the economy.
Economists are now in a panic. We are not seeing the growth necessary for a true recovery to take place. Small businesses have become the Achilles heel of the U.S. recovery by limiting growth and job creation.
With REAL unemployment rates hovering around 17%, the hopes of recovery have all but faded.

Business Restructuring can provide solutions for small business owners who are now suffering through this lackluster recovery. While there are plenty of law firms, collection agencies and banks contacting business clients demanding payment, who does a small firm have to turn to for assistance.

In today’s economy, companies throughout North America are experiencing an increased number of cases where the business owners are under siege. From slowdowns in accounts receivable, credit line decreases which affect working capital and a general pessimistic outlook for the future, the number of business owners in trouble are growing.

Ensure that a Business Restructuring firm has the certification and credentials behind it when considering working with a Consultant. Legitimate Business Restructuring Firms will not charge your company any upfront fees and earn a fee only in the case of a successful resolution. In most cases, businesses are able to reduce debt levels by 30-80% and maintain ongoing relationships with their existing creditors

Keep in mind there are many “debt settlement” firms that exist. These types of businesses cater to consumer credit cards and usually require substantial fees, escrow accounts and policies which risk a consumers credit rating. Legitimate Business Restructuring firms DO NOT provide any form of consumer debt settlement whatsoever. It is suggested that any consumer seeking to reduce their personal debt to contact local non-profit credit counseling agencies found in most communities.

Certified Licensees contact businesses daily who are seeking ways to reduce and restructure their debt levels with existing creditors. The account receivables are slowing and in many cases are disappearing. AR is lifeblood for small business and quickly turns a once viable business creditor into a non-paying business debtor.

Typical Small Business Restructuring Cases:

Business Operating from $250k-$50 Million.
Company owes to multiple Creditors/Banks.
Accounts Receivable has slowed.
Morale is down, employees are concerned about becoming laid off.
Some cases have resulted in legal proceedings. A certified Business Restructuring Consultant puts a stop!
Bankruptcy or the closure of the business is not the course desired by the Client, yet they are facing the real possibility of this becoming a reality.

If your business has been affected by the continuing economic troubles we see in the economy, allow a professionally trained Licensees to provide you with local support. Again, there is No Fee is there isn’t a successful resolution of a business debt portfolio. In most cases, businesses are able to reduce debt levels by 30-80% and maintain ongoing relationships with their existing creditors

In addition, highly valuable financing options through unique lending opportunities may be provided. Direct contacts with multiple lenders throughout North America who have a myriad of financing options can provide much needed cash flow at a time when there are little options.

Typical cases include small businesses operating up to $50 Million per year. Due to short cash flow, slowing AR and non-payment from clients, the business owner is suddenly facing their own angry creditors, in the form of Attorneys, Bankers and Creditors direct. This has lead to a cancerous morale problem within the clients organization as employees are aware of the impending problems, which in many cases may lead to lay-offs, bankruptcy or even the closure of a company.

With recent turmoil in the economy the typical case loads cover a wide variety of industries -

Commercial Real Estate
Business to Business Acquisitions
Inventory Based Business Models
Automobile Suppliers
Equipment Manufactures
Factories/Assembly Plants, etc.

The Business Restructuring Consultant acts as a confidant. They will provide services to the company which include Business Debt Mediation, Restructuring and offer access to little known yet fast and effective lenders to provide working capital and other financing.

Cases usually last from 1-3 weeks and the Consultant is heralded as a savior of the business. In many situations, business owners and their respective Creditors will maintain their ongoing business relationship and continue to trade, offering both sides the ability to prosper for years to come.

The Creditors have multiple resources at their disposal to collect a debt: Collection Agencies, Law Firms, in-house Counsel, etc. Now, the Debtor Business Client has someone on their side to assist in the restructuring of such debts, maintaining the viability of the clients business, saving both sides significant resources in time, money and aggravation, and in most cases, the seasoned Business Restructuring Consultant can maintain the valuable business relationship.

Guide on How to Write a Viable Business Plan

Writing a Business Plan Business plans are considered the resumes of businesses. They give a clear description of what your company offers, how much profit is expected, how the business operates, as well as how soon these goals will be met. If you want to start a business, you need to write a business plan, as no financial institution will ever make the mistake of approving a business loan without going through the blueprint of success. There are free business plan templates on the Internet today. You can also buy book references at local bookstores. A sample business plan is generally enough to give you all the important details you need as a prospective business owner. To help you get started, below is a quick outline of how a business plan should be written.

Sample Business Plans

A template refers to the standardized document that contains the basic layout of a business plan, where additional details may be added to customize for specific use. A business plan template is basically an outline that will serve as your guide on making your own, adding information regarding your company and making a distinctive presentation. All business plans must include these sub-headings:

Executive summary – The opening section of the business plan must include introductory information about your business, such as names of the owners, date started, employee accounting, as well as a comprehensive description of the premises. It must also include a summary of the rest of the document, as the executive summary is oftentimes the only section people read in great detail. You need to briefly describe the service or product your business offers, the description of your advertising approach, startup money, other financial requirements, expected sales numbers, and selling successes to date, if any.

Company overview – Each segment of the summary should contain as much information as possible. You must include detailed biographies of each principal owner, especially if they relate to the industry where your business will operate. Explain the industry and its current financial condition and future expectations. Thoroughly describe new developments and products that will either negatively or positively affect the position of your business in the industry. Make sure that you also include any innovation that you introduce in your business. List your client base, include the names of your target customers, and describe how you’ll get their attention.

Market analysis – In this section, expound on the items stated in the company overview. Come up with an accurate estimate of the current size of the market you wish to enter (when and how it is expected to develop and grow), the trends that affect your operation, the direct and indirect competitors of your business, the prices of your services or goods, and the strategies you have come up with to enter your target market. This is also the section that will include the list of your vendors or suppliers. You can also incorporate a testimonial or a feedback for each supplier if possible.

Sales strategy – Provide all necessary information pertaining to both sales and marketing, including descriptions for your ad materials, type of marketing methods you wish to use, and how you intend to deliver and sell your service or product to customers. Also include a projection of sales for the first eight to twelve business quarters.

Operations plan – Describe your business location in detail and give an example of what each staff member is expected to perform on a daily basis. List the equipment you have and don’t have. Also include sources and prices. Outline your inventory tracking methods, and detail the processes you intend to follow to track purchases, sales, as well as customer satisfaction.

Management plan – Create a list of personnel you need and identify the costs associated with maintaining a certain level of service. Describe your hiring methods and the skills each employee must have in order to fulfill their jobs properly. Mention all the benefits you offer, give a summary of their costs, and include a copy of employee policies and procedures.

Financial information – This is one of the most important sections of a business plan. Include profit-and-loss statements, the evaluation of the money you need to earn break even, and the figures that move into profitability. Come up with a list of sources and uses of funds. Also include a cash flow projection. Provide an explanation where the money will go – equipment, real estate, personnel, inventory, or capital – as well as your exit strategy. This information will be used by anyone who wants to invest in your business.

The Benefits of Hiring a Business Financial Consultant

It’s no secret that starting your own business requires a lot of hard work and research. Besides those things, you also need seed money in order to get your business up and running and that often means applying for a loan at a bank.

Getting a business loan is just like getting a loan for anything else, for the most part, but banks often require a little more information than is typical of other types of loans before they’ll hand over the funds that you can use as seed money to start your own business.

That’s where a business financial consultant can help.

Having a business plan in place is one of the most important things that any aspiring business owner should do. Beyond being an outline of what your business is about and how you plan to succeed, your business plan should also include a plan for how the various financial aspects of your business are going to be dealt with.

Hiring a consultant can help you to successfully navigate what is, at times, a very confusing maze of laws and rules that govern business finance. Not only can you make sure that any money that you put into your business is appropriated to the right aspects of the business but, with a consultant, you’ll also strengthen your business plan so that the banks will extend a line of credit to you.

Business financial consultants typically know exactly what it is that banks look for in the people that they’ll potentially extend loans to. It’s important to remember that starting a business isn’t just particularly risky for you; it can be a risk for the bank as well.

Banks want to make sure that they’ll get a return on their investment into the business that you’re starting. In order to guarantee them that their money won’t just disappear, you need to have a business financial consultant’s expert grasp on many of the different aspects of business finance and have everything thoroughly outlined in order to secure business funding.

Aspects of a Business Plan

Some of the aspects that you need to be familiar with in your business plan include how the funding you’re trying to secure is going to be spent on things related to the business like supplies, office space, personnel, marketing and promotion.

Beyond these things, a business financial consultant will use various CFO services to help you develop an idea for things like anticipated cash flow and escalating costs as they relate to the growth of the business. Having a plan to start a business is important, but having the foresight to predict how things are going to develop once the business is operational is equally important.

With the economic times being as trying as they are everyone is tightening their belts and banks are looking at who they give money to with more scrutiny than they had in the past.

Succeeding as an Owner

If you want to succeed as the owner of a brand new business then you have to make sure that every single aspect of your business related finances are in order before you go to the bank or any institution of lending with the expectation that you’ll be given the money needed to get started.

A business financial consultant and the CFO services that he or she can provide are pretty much necessities for new business owners, but any business can benefit from working with such a person. After all, you’ve already got plans to start your business and it’s a given that you’ll want to stay in business.