Many small business on the verge of closing
July 16, 2008 by ShannonCherry
Filed under Business
With the rise in gas prices and food prices, many small business owners, especially restaurants are having a difficult time staying open.
A National Small Business Association survey of 500 small business owners found that sales and profits had dropped and job growth was at the lowest point in 15 years, problems that could have a significant impact on an already shaky U.S. economy.
The survey also found that 71 percent of business owners have a “negative outlook” on the economy compared to 43 percent a year ago; confidence in their business’ success dropped from a high of 81 percent a year ago to 70 percent now.
It seems that many consumers are bypassing small businesses and seeking out bargains in places like Costco Wholesale Corp., which reported a 32 percent jump in its fiscal third-quarter profit.
What do think? Are rising prices hurting you and your business?
Yes, small businesses that mostly depend heavily on economic trends feel the pinch sooner. Those that do not have direct dependence feel the pinch a little later. But then, the latter have some time to hedge their risks.
In India, the rise in fuel prices have had a cascading effect on all industries. The worst hit are real estate and retail who depend heavily on raw material delivered through transport.
However, business like ours that depend on intellectual property, innovation, and design skills have not yet felt any direct impact of inflation. But we have to be extra careful. We have to hedge our funds, plan our pipeline well, and plan our outgoings too.
I’ve been in the business of helping small businesses in converting inventory to cash for nearly 10 years, and over the last year or so our phones have been ringing consistently and consultation requests flooding our mail boxes from independent retailers who just can’t find the customers and generate the business they need to be profitable.
In talking with many of these people, there is a lot of fear, worry, and concern about closing their store…
How much money will they make, how much money will it cost to have it done professionally, can I do it myself and if I do what will the results be…as well as a host of other questions.
For most of these store owners, selling their business outright is generally not a viable option because there is little value there for a potential buyer other than the cost of the inventory, and even that most people aren’t willing to pay more than pennies on the dollar for.
We’ve had countless testimonies from people in nearly every type of retail store that has used our services that were amazed how our marketing strategies were able to get the returns for their inventory that we did.
Bottom line is this: if you’re on the “verge” of closing your store, seek either professional help to right your ship and get the business into your store, so you can get the cash flow going again…it IS possible….
or
have a professional help you sell all your inventory with a Sale to maximize your profit quickly.