Real Estate

2009 Business Disaster: How to Survive

Have you been to your local mall lately? Next time you will notice that business after business has closed its doors. “FOR RENT” signs dominate the windows of Strip Malls across the United States. Many experts and analysts see in 2009 the continuation of his downward spiral of business failures and bankruptcies.

These once thriving businesses have been forced to close for reasons beyond their control. Uncertainty in the employment field is at staggering levels, which has slowed down buying cycles, which in turn has reduced sales and profits for these companies. The financial collapse of the largest banks and mortgage companies has dried up sources of credit for these businesses. Businesses have found it nearly impossible to get a loan to get them through these tough times, because the banks aren’t lending. Most companies did not have adequate cash reserves to weather such a prolonged recession, forcing them to close their doors and add more people to the jobless roll.

If you have a business, here is your Survival Tip of the YEAR! Get funds now, even if you don’t need them! Yes, I said, even if you don’t need it.

Most of the companies had great years in 2006 and 2007 with strong sales. 2008 was weaker and 2009 will be even weaker. You must be structured now to qualify for financing. If you go out for a loan now, whether it’s for growth, expansion, or a line of credit to hold cash reserves, even if it’s a survival loan, the lender will look at your past sales. If you wait too long, the lender may see your business sales decline and it will be nearly impossible to obtain financing.

Although there are positive signs, 2009 will be a difficult year. Don’t get caught up in a financial cycle that could lose you the business you’ve worked so hard to build. Make sure you have enough cash reserves to survive a decline in sales this year. Review your expenses and reduce unnecessary expenses. If you need help, call a funding source like

If you think you’re in trouble, find a good business consultant who has a team of experts who can help you solve your problems and help you structure your business to not only survive, but succeed even during a downturn.

Thinking ahead in this way will give you an edge over your competition. It will put you in a stronger position in difficult times, giving you leverage to use to your advantage. Your opportunities in difficult times are very profitable if used correctly in good times. When the economy recovers, it will grow bigger, faster, and be more profitable than ever before.

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