Savvy small business owners should be keeping a close eye on upcoming changes. Here to help keep you prepared and informed are the Top Trends to watch for 2009.
1.     Tighter Credit Lines. Even if you have great credit and make all your payments on time, banks might reduce your credit line or increase interest rates for reasons as erroneous as having the wrong business partner or working in a high risk industry. If you rely upon credit cards or other credit lines to do business, begin increasing your debt-to-income ratio and keep some ‘wiggle room’ available just in case.
2.     Higher Taxes. Taxes, taxes and more taxes are likely to be coming down the pipelines as state, local and federal budget deficits attempt to make up the difference. Everything from higher payroll taxes to increased workers compensation premiums are likely to grow faster than the rate of inflation.
3.     Tougher Regulations. One way the government makes money is to enforce stiff penalties in response to tougher regulations; expect state and local municipalities, federal agencies and other oversight bodies to investigate and penalize infractions much more aggressively than in the past.
4.     Inflation. The cost of goods and services has been rising and is likely to continue to do so well into 2009. So far, the cost of raw materials, transportation and other expenditures hasn’t been passed on to the consumer – yet. However, with an official CPI of 5 percent and a PPI of over 8 percent it won’t be long until inflation rears its ugly head across the board.
5.     Bankruptcy. Some small business owners simply won’t make it through the tough times. Make a point of not allowing your business partners and sub-contractors to hurt your business; keep an eye on payments, work and other measures to make sure partners remain viable and healthy. If in doubt – ask or make alternative plans so their financial problems don’t becomes yours.
Small business owners are faced with numerous challenges for 2009 but one way to stay lean and mean even during touch economic times is through the strategic use of PEO services and competitive workers compensation rates. Contact a PCG staff to learn how we can save you time and money.
