Small biz sentiment is down…but is there a silver lining?
Posted by Tom Taulli on March 10, 2009 in Business Valuation [ 0 Comments ]
Of course, small business owners are deeply concerned about the future. And, this is being reflected in a variety of surveys, such as from the latest report from the National Federation of Independent Business Small Business.
And, as things get worse, the wealth of small business owners continues to deteriorate. This is clearly evident on the business valuation database of BizEquity.
But, even during bad times, there are silver linings, right? Definitely.
For example, it is more cost-effective to start a business, in terms of supplies, labor and so on. At the same time, customers are looking for alternatives. Thus, if your business has a relatively competitive overhead structure, you may be able to snag some good business.
Something else: you are likely to find good valuations on businesses for sale. With few buyers in the marketplace, you should be able to negotiate a strong deal. And, as the economy eventually comes back, the rewards can be significant.
All in all, it’s still smart to be cautious. But, in this environment, there are still some potentially great opportunities.