That's Business

The economy over the last two years has been bleak. Every business and every company has been hit with financial problems some worse than others. How does this economy affect small business owners? Here are some trends that business analysts have noticed.

• Because of the recent economy woes, entrepreneurs are more cautious when starting up a new business. Instead of rushing pell-mell into a huge launch that may not be fully thought out or planned, they take more time before opening up for business. They make sure their business plan is fully developed. They have good marketing strategies in place. Their finances are carefully in order.
• Money available for small business owners will continue to shrink. Venture capitalists, angel investors, and even banks are reducing the amounts of funds available for small businesses. Even though the government has stimulus plans to bolster the economy, it will take a long time for that money to trickle down to small businesses (if it ever will).
• Small businesses are having trouble collecting on their own accounts. This severely impacts the business cash flow. If they cannot collect money that people owe them, they dont have money to meet payroll demands or to pay off their own bills.

As if all of this isnt bad enough, the IRS is out to get small businesses. The House of Representatives increased the budget for the IRS who in turn hired thousands of new auditors. These auditors are targeting small businesses because the federal government feels that they should get more tax money from them. These auditors will be scrutinizing small businesses making sure they pay all of their taxes.