All the buzz right now is that banks are reaching out to small business and that capital is freeing up and becoming available again. This might bode well for those in strong financial positions considering new opportunities created by a recessionary economy, or for those in certain sectors. But for most the opposite is true. Let me explain.
The vast majority of small businesses still face uncertainty. Pending legislation challenging Obamacare and the possible resulting outcomes in terms of healthcare benefit costs loom. The possibility of a double-dip or, worse yet, another crash resulting from inflated markets is scary as well. But hardly spoken of is where the capital is being afforded; alternative sources of energy, green projects and federal contractors of all sorts. Many of these sectors pose direct threats to small businesses yet their future is unclear.
Small businesses might just do well to stick with their core market segments and embrace them. New uses for existing products and expanding services and products to existing customers could go a long way right now without saddling up on new debt. Watch for Spring Break but down think that the Financial Winter is over just yet.
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