It’s not pretty out there –

Part of my business is speaking engagements – often booked months in advance. Not usually a big deal. But tonight, I get to talk about raising capital. Uh – hello?

• SBA loans to small businesses have plummeted compared with the same period last year. Volume in the agency's principal loan program has fallen 30%, with 28,000 fewer loans approved this year (USA Today,9/28/08)
• The financial crisis has touched off worries among entrepreneurs about the status of their business loans and credit lines (BusinessWeek.com, 9/26/08)
  

It’s time to return to the basics. In talking with a client the other day, she said she had multiple plans of execution based on available capital. Certain projects or purchases would have to wait until the capital became available.

Many of us need to rethink our businesses and overhead if we plan to weather the storm.

1. Focus on your core business - what do your customers need?
2. Be your harshest critic when it comes to purchases– measure and focus on ROI.
3. It’s a business, not a hobby. If you’re not making money, do something that will.
4. Reduce overhead where you can without impacting customer service.
5. Pay down debt any chance you can.
   

I don’t expect the next few months (years?) to be easy. But those that can adapt will come out the other side stronger, leaner businesses.