About Business Ideas

Archive for March, 2010

In an economy like ours, it is often the many small companies that suffer the greatest. In many instances, companies need to find capital to support themselves when sales are down and loans are not an option. In many ways, it is very similar to trying to cut your own budget to pay for groceries and other financial obligations. When you say to yourself, “I need cash for my business”, you must look at your operating costs and try to find ways to cut expenses.

This may be the smartest way to save money for the times when sales are down and your customer base seems to be shrinking. Although it is hard to lay people off, it may be one of the quickest ways to free up money to survive the storm. It is a better thing to lay off a few extraneous employees than for the company to go bankrupt, where everyone loses their job. Also, reevaluating your inventory may free up some cash as you may be able to keep less in your warehouse.

These are more drastic ways to acquire money quickly, but you may also be able to sell unused equipment or rent out extra warehouse space that you are not using. By setting up some empty space, you may be able to store another company’s inventory, saving them money and creating a revenue stream in the process. If you are an online company, you may be able to switch hosting companies or offer more discounts to spur business. When your prices are lowered, your customer base will increase and you will be able to recoup some of the money you have in inventory rather than wait for the items to sell at traditional pricing. Saving money is a process that includes looking at every aspect of your company and then assessing the areas where you can afford to cut back.

To say the state of the economy has changed dramatically is an understatement. And for those who are holding their respective breaths for ‘it’ to return, they will unfortunately expire for lack of oxygen. ‘Classic’ business models are now being reformed around the medium of the Internet.business

A Little history. . . In 1892 a young fellow started peddling organs and pianos from a horse drawn cart in Painted Post, NY. In 1914 he joined Computing Tabulating Recording Corporation as General Manager and ten years later in 1924 he renamed the company he was now running to International Business Machines, IBM; his name was Tom Watson.

Consider this: Watson was initially operating a home based business, even if it was from a horse drawn cart. One could only think if Watson had the benefits of a technology one hundred years in the future, we now call the Internet, IBM would have taken over the world, which they did for quite a few years with their large mainframe computer systems and remote work stations.

In the period during the Great Depression Watson embarked upon a major company expansion, hiring more employees, opening more offices, and expanding his business in an era were most had given up hope. Ask yourself, how many IBM punch card and other mechanical business machines could be sold when unemployment reached 25% in the US and up to 33% on a world wide basis? What did Watson see that others did not during the Great Depression?

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