Filing Chapter 11

Small business survival depends on many factors. Small business owners know they must make money to survive. The key to any successful business rests on the ability to keep the money coming, to offset expenses. Many small businesses fall into the traps of excessive loans, too much overhead, or a costly advertising campaign. Small business survival is a high-wire act, where the business teeters on falling into the unknown below. Some businesses however manage to find their balance and make it to the other side.

Any small business will have setbacks on the road to success. A short profit year may influence a small business owner to cut back on unnecessary expenses, reducing inventory, employees or the amount spent on certain services. Owners must evaluate advertising dollars first. A small business owner can discover their average cost for a new customer by calculating their cost for advertising and the number of new clients that reach their store. If a small business owner spends fifty dollars for one new customer, then they must adjust their advertising campaign to lower the cost per customer. Although difficult to find out, business owners should not overlook this calculation.

Small Business Survival with Hefty Competition

Many small business owners find that they are not selling a unique product or service in their community. A tire supply shop may have ten other stores in town offering the same service and products. How can a small business owner compete in a market and survive?

It is not easy. The answer may change depending on the situation. A small business owner should know their competition. If the other tire shops in town are offering a discount on radial tires, then they should launch a similar campaign. Or better yet, offer five percent less than the competition. Any approach you take to compete should be bold and innovative. Try something new, if you are struggling for business. Find a niche and run with it.

Competing in a saturated market does not mean you should run your advertising like a negative political ad campaign. A small business owner does not want to fling mud at competitors, but should consider positive word of mouth about their own business. By staying positive, many customers will return and recommend your business to others. It is a cycle that only you can start in your business, not your competitors. If a small business owner suggests that a competitors prices are too high, or their service not up to par with others listening in the business, they may consider going there. Why even talk about a competitor with your customers? It defeats the purpose of marketing your own business and brands another name into their mind.

Small business survival depends on the business and its approach to the market. Try to stand out from the crowd in a positive fashion. With time, customers will return and the business reputation will be known in the community.