Small Business Week In Review: 01/12/2009

This week we are starting a new feature, the “Small Business Week In Review” on the smbZen BizJournal.  Tom and I are launching this feature to help the small business community identify and keep up with trends in the space.  Our goal is to give business owners (ourselves included!), the opportunity to reflect upon, discuss, and assess what’s happening.

If there are specific topics you would like us to include, or if you have blog post & story recommendations, please send a direct message to us on twitter.  To read the articles we will be featuring, follow us on twitter or visit our delicious page.  Without further ado -

Economic News Roundup

A survey of over 20,000 small businesses suggested employees in this sector should expect wages to decline.  SurePayroll President Michael Alter said, “I wouldn’t be surprised if we saw another 3, 4 percent decline for the year.”  Reductions in labor costs by small to mid sized companies have also accelerated according the latest ADP reports.  Small businesses reportedly fired 281K people this past month.  The decline in expenditures by small businesses is affecting Walmart’s Sams Club Division. According to Doug McMillon, Sam’s Club’s President, “small business members in particular continue to face more pressure from today’s economy and also are more selective in their purchases.”

Despite deteriorating conditions, small business owners remain optimistic. Forty-five percent of Small Businesses Expect Obama to Improve the Economy.  In the absence of an economic stimulus plan, economists are forecasting unemployment to peak around 9% in Q1 2010.  Some economists suggest that under President Elect Obama’s recovery plan, unemployment will peak around 8% this quarter (Q1 2009).

unemployment_stimulus
Link to the Report

The bottom line: expect things to get worse before they get better.  And as with any downturn, manage your company’s cash flow.  “If you are a small-business owner whose enterprise is churning out enough capital to cover operating expenses, as well as your personal obligations, you are a step closer to a stronger” recovery writes Barton Horowitz in his article Getting Down to Business in 2009.

Microtrends, Marketing, and More…

Despite the outlook, there are reasons to be optimistic.  SmallBizTrends recently published an article titled 5 Key Microbusiness Trends for 2009.  The number of small businsess is expected to grow. “Historically, people tend to start many more very small businesses during economic downturns, either because they are out of work and desparate for income or need extra cash in hand to make ends meet.”  Freelancers, consultants, and other organizations servicing these new firms should continue to do well.  For those just starting out, Lewis Green has an excellent blog post on how to get customers and clients.  Finally, if you are looking for information on internet marketing, here’s a link to the best marketing posts of 2008.

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January 12, 2009 | news, small business 

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