Wednesday, January 14, 2009

Small Business Status

Things are definitely rough out there for small businesses.  The Zions Bank Small Business Index has dropped to its lowest point ever, and everyone expects things to get rougher this year.

But as I've pointed out here and in Utah CEO, just how secure is your job?  Look at the big companies closing down.  Flying J is the 16th largest privately held company in the country, but it was forced to file bankruptcy because its creditors started calling in their markers.  Job cuts can, and will, strike anywhere.  Build an ark now.

Lots of people are starting their own businesses, typically out of necessity (such as the most recent position on their resume being at Lehman Brothers).  They identify something they can produce or market that people will pay for, and they go for it.  You should too.

Try to keep the start-up borrowing as low as possible.  Shoot for zero.  If you need some, it's out there, but it's getting scarcer, so expect to fight for it.  For example, Zions has been the biggest small business lender around here, but it also is Flying J's biggest creditor and owns the mess that is SunCrest, and that just can't help the loan pool any.

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