Fear can be very debilitating to business person, especially in finance area. If you are fearful of financial disaster you may head toward it instead of taking risks necessary to become successful. You need to focus on what you want for your business, to be ready for challenges that will come your way, and then do whatever it takes to make it work.

Five, instead of looking at recession as an excuse, see it as a time of opportunity. Economic down turns sometimes will open up different opportunities for your business. During these times, people need and want value for their money. Instead of replacing an item, they will repair it. During this time, you may be able to buy equipment or inventory for less. Think ahead. Remember, business growth tends to be erratic with growth spurts and setbacks. You need to believe in what you are doing. You are in business for long run so learn to deal with ups and downs. Realize that you will prevail in long run, since your product or service has value and appeal.

Six, you also need to look ahead by staying on top of changes. Keep in touch with innovations in technology and how they effect your business. Don’t purchase something because it is latest and greatest, if you don’t need it. However, if a piece of equipment or certain marketing methods will help you reach your goals, save you time or help you run your business better, invest in it.

Seven, be aware that political or social changes that can make a difference, too. They can mean that your whole market is changing. Read everything you can get your hands on, stay tuned in to all media and don’t forget to be aware of what your competition is doing. You need to keep asking yourself,” How can I cash in on this new trend?” and “What do I have to do to catch up?”

And last but not least, realize that there are going to be certain areas of your business you are better at than others. Let’s say you manufacture and sell cassette holders. You are great at selling them, but not very good with manufacturing end. Once you find what you can do better than any one else, keep doing it. You’ll not only stay in business through tough times, you’ll stay ahead.

Copyright 2003 DeFiore Enterprises

SBA loans are also easier to secure because they are offered by private lenders, and are not restricted by regulatory constraints that make bankers hesitate to lend to small businesses. The typical private lender offers from $100,000 to $2,000,000 financing (more or less depending on lender).

As a buyer, seller financing should not be overlooked. How much money is seller looking for as a down payment? Will seller finance some of purchase price? Is there another lender involved (like a bank or a former owner)? Is there an assumable loan? What is current balance of each loan business has now? This is an essential area of inquiry if you are trying to save time. Most sellers are unrealistic in early stages of selling their business, even if it is listed with a broker. Sellers usually hope for an all-cash buyer. Most buyer prospects are also unrealistic - buyers are often looking for 100% seller financing! In reality, "average" deal is closer to 30-50% down in cash from buyer with 50-70% financing from seller, SBA, and banks.

Most first-time business buyers need seller financing. Sellers are much more likely to finance buyers they like, regardless of experience. But it can take time for sellers to warm-up to this idea and to a particular buyer prospect. Seller financing is great because it shows that seller believes in business, but most importantly he or she believes that you can run it profitably!

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