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Intuit Offers 10 Tips for Small Businesses to Survive Through Downturn
By James Comtois
Small business owners remain relatively optimistic - yet realistic - about opportunities and growth for their
businesses, despite tough economic conditions.
The latest "Small Business and the Economy" survey by Intuit found that 82% of business owners still
see opportunities for their business, compared to 91% in a similar Intuit survey conducted six months ago. In the
most recent survey, conducted in the second week of October, 64% said they still expect to grow, compared to 77%
six months ago.
While remaining fairly optimistic, small business owners are also realistic about the downturn in the economy.
67% say worrying about how to find new customers keeps them up at night, while 60% plan to focus on reducing costs
and retaining current customers.
This mix of optimism with realism may reflect the fact that many are not new to tough times. More than 60% of
the survey respondents said they had previously survived a recession.
Intuit offers 10 tips to help small business owners survive and thrive during tough economic times.
- Look for freebies: Many free and nearly free business tools and resources are available for small businesses,
including software and marketing advice. Now may be the best time to take advantage of them.
- Get online and get found: Intuit Websites, www.intuitwebsites.com, offers easy website design tools and services,
including 2,000 design templates, to help create a website and sell online. It's free for the first 30 days and
inexpensive thereafter.
- Find customers: Go to http://www.intuit.com and click on Promote Your Business.
Here business owners will find online services to list their business on local websites, place Web ads next to
search results related to their business, and drive sales using e-mail marketing with a free 60-day trial. There
are also tools to create professional-looking business cards.
- Manage your money: QuickBooks (http://www.quickbooks.com) is easy-to-use
accounting software to help business owners make sure that their money isn't slipping through the cracks. It helps
them stay organized, look professional and be ready for tax time. Get started for free with QuickBooks Simple Start
Free edition (http://www.simplestart.com).
- Get paid faster: Billing Manager (http://www.billingmanager.com)
offers free online invoicing to help business owners get paid fast. It lets them get and stay organized, see all
overdue invoices and send reminders, and create and send professional-looking invoices. For a small monthly fee,
they can also accept credit cards.
- Let them pay with plastic: Whether you run a retail store, take orders by phone or sell online, customers will
appreciate having the option to pay by credit card. Check out Intuit QuickBooks Merchant Service (http://www.quickbooksmerchantservice.com)
for a free 60-day trial and a competitive rate thereafter.
- Do payroll yourself: Run your own payroll with easy-to-use Intuit Online Payroll (http://www.payroll.com).
Pay employees, pay taxes and file forms online in just a few easy steps, starting with a three-month free trial.
- Free for the day incorporation: Use MyCorporation.com to file business documents and save hundreds of dollars
in attorney fees. MyCorporation.com will let anyone register a new corporation or LLC for free from 6 a.m. until
6 p.m. Pacific time on Nov. 11, saving nearly $150. Use the coupon code - FREE149 - to get the discount.
- Stay connected: QuickBooks Online Community (http://community.intuit.com)
is a free small business resource site where business owners and QuickBooks users can share advice and tips with
each other and get answers from small business experts. They can also join an online community of like-minded entrepreneurs.
- Barter it: You're a web designer and a small business down the street is a printer. See if you can revamp their
website for free for a reduced cost on printing. Joining a community of entrepreneurs like the one above might
let you help each other out by bartering complementary services.
More information can be found at http://www.intuit.com.
Small Business Owners: Saving Money, Not Mother Earth, is Top Priority
Saving money is at the root of environmental efforts among the nation's small and mid-sized business owners,
according to new survey findings by PNC Bank.
These owners also want the new U.S. president to support both oil drilling in restricted areas and increased
incentives to reduce energy use.
PNC, ranked among the nation's most environmentally responsible companies with more certified green buildings
(55) than any other company on earth, conducted its first "Green Small Business Survey" to get insights
from small and mid-sized business owners about the environment, its impact on their decisions and other views.
With the presidential election set for Nov. 4, PNC's survey found that many small and mid-sized businesses want
the new president to 'do something' about energy and environmental policies:
- Drill, Baby, Drill: Asked for the top energy policy action they would recommend to the new president, one-third
(36%) support oil drilling in the Arctic National Refuge and other restricted areas. The next choice, among 23%,
is increased spending and incentives for the development of alternative energy sources. Another 15% would like
to see more emphasis placed on incentives and requirements for energy conservation and an equal number would also
advise greater use of nuclear power.
- Pay More to Use Less: The top environmental policy recommendation is to increase incentives for businesses
to use less energy, chosen by 34%. One-quarter (26%) would support a mandate on increased fuel efficiency standards
for cars and trucks. Meanwhile, only 11% want the U.S. to ratify an international agreement that mandates reductions
in carbon emissions while 7% would implement more stringent environmental protections.
"The biggest concern for most small and mid-sized business owners is cash flow," said Todd Barnhart,
senior vice president, business banking, PNC. "These findings reveal that when it comes to the environment,
owners think first about their bottom line. Many are missing the point that environmental sensitivity also makes
good business sense."
Barnhart added that PNC's environmental leadership has resulted in innovative products and services. For consumers,
this includes free online banking and a discount loan rate to buy new hybrid cars. For small businesses, a discount
loan rate is available to finance energy-efficient improvements, e.g., water and light fixtures and Energy Star
appliances that can improve efficiency and reduce operating expenses.
Being environmentally friendly isn't all about protecting Mother Earth. In fact, most owners cite saving money
as the root of their green efforts, saying it is the primary motivator when implementing or considering business
actions that could have environmental impact.
Three-fourths say savings are the primary reason they are currently or would reduce energy usage, invest in
energy efficient systems or change shipping/distribution. When it comes to recycling, however, one-third (34%)
cite savings as their primary motivation, while nearly half (49%) recycle for the environment.
- Recycling Rules: When asked what actions they have taken, nearly three-quarters (70%) of owners recycle. However,
only about half (55%) are taking action to reduce energy usage, and one-third (39%) are investing in energy efficient
systems. One-fifth (20%) have changed shipping or distribution.
- Good Intentions: Overall, PNC found business owners' intentions are good as 80% say they give some consideration
to environmental impact when it comes to running their business. Within that total, however, 26% view it as a "major"
consideration while 21% say environmental impact is "not something I think about."
More information can be found at http://www.pnc.com.
Entrepreneurs' Attitude Toward Economy Reflects Concern, But Positive Long-Term Outlook
A new survey of Ernst & Young LLP Entrepreneur Of The Year finalists and winners explores the attitudes
of entrepreneurs toward top-of-mind issues, including the economy, government and climate change. The majority
of the 116 respondents indicated that the strength of the economy was not the deciding factor in determining when
to start their companies. The Entrepreneur Of The Year program is now in its 22nd year, and its average winners
have $350 million or more in yearly revenues, 20% annual growth, and over 1,000 employees.
Despite worries that the US economy is weaker than most people believe (50%), entrepreneurs participating in
the survey indicated that they think the US economy will continue to be the world's strongest (54%). The majority
(61%) founded their companies in a healthier economic time, but overwhelmingly (92%) stated they would have founded
their company regardless of the state of the economy.
Although entrepreneurs are active in the political sphere, those participating in the survey believe the government
could do more to support new businesses. Respondents overwhelmingly (72%) stated that the government doesn't do
enough to support entrepreneurs; 73% are personally involved in public policy issues and 64% have petitioned a
politician for policy change.
More than half (53%) of entrepreneurs surveyed think the most important contribution they make to the U.S. economy
is to create jobs. Additionally, almost one-third of those surveyed (28%) believe the most significant contribution
entrepreneurs can make is to promote innovation and improve quality of life for their customers. Those surveyed
contribute to charity; 44% donated $50,000 or more in the past year.
"The American economy is built on the backs of entrepreneurs," said Larry Haynes, America's director,
Ernst & Young LLP Entrepreneur Of The Year program. "This survey illustrates the contribution entrepreneurs
make by creating jobs, improving local communities and bolstering the larger US economy. They are ready to make
adjustments and continue striving for growth and success; in fact, nearly three-quarters of entrepreneurs we surveyed
believe they will innovate and find opportunities in the current economy."
Entrepreneurs have already taken steps to adjust to the economic downturn. In the last 24 months, 44% of survey
participants reduced spending, 29% reduced their workforce and 29% refinanced debt. On a positive note, 32% sought
acquisitions and 67% said they increased the number of employees by an average of 14% in the past year. Respondents
are particularly concerned about the cost of health care and energy; 50% and 49%, respectively, reported those
issues as having the most significant negative effect on their companies. Health care costs for respondents' companies,
for example, rose an average of 15.49% per company last year.
When it comes to seeking additional funding, entrepreneurs participating in the survey indicated that they are
looking towards private equity (73%). Another 12% would consider a private wealth fund infusion. Twenty-seven percent
postponed an IPO or another strategic transaction in the last 24 months.
While only 20% of responding entrepreneurs say their executive management and board completely understand climate
change legislation and risk, 30% of respondents think the impact of climate change is very important to their companies.
Entrepreneurs participating in the survey are not sure how to respond to climate change, however - 31% view assessing
the impact of climate change as a challenge.
More than half of respondents (51%) say they have increased their focus on climate change in the past 2 years,
but 53% say they do not spend any money on climate change related activities. Another 41% do not plan to spend
on climate change related activities in the next 5 years. Activities reflect more cost savings than investment;
those who do plan to allocate funds to address climate change will spend their money identifying cost savings/efficiency
opportunities (53%), integrating clean technologies into internals or supply chain systems (32%), or creating new
or modified internal policies and procedures (29%).
Ernst & Young's Entrepreneur Of The Year awards program celebrates its 22nd anniversary in 2008. Awards
are given to entrepreneurs who demonstrate extraordinary success in the areas of innovation, financial performance
and personal commitment to their businesses and communities. This year's awards take place on November 15th in
Palm Springs, California, as the culminating event of the Ernst & Young Strategic Growth Forum, the nation's
most prestigious gathering of high-growth, market-leading companies.
More information can be found at http://www.ey.com.
