In the event of a declared disaster, the Small Business Administration offers assistance, of low interest rates, to U.S. businesses of all sizes. Funds can be used to make repairs to damaged equipment, inventory, machinery and real estate. Homeowners and renters can apply their funding to repair or replacement of personal property or repair damage done at their primary residence.

At 5:00 p.m. on Friday, May 2nd, the Small Business Administration’s Disaster Loan Outreach Centers, located in four Mississippi counties, will be closing their doors. The centers are located in Warren, Scott, Rankin and Newton. The SBA has been providing assistance to the victims of the tornadoes that raced through the state on April 4th.

Assistance is also available to those who live in the counties of Claiborne, Clarke, Copiah, Hinds, Issaquena, Jasper, Kemper, Lauderdale, Leake, Madison, Neshoba, Simpson, Smith and Yazoo.

There is no need for residents to wait until their insurance claims are settled before applying for assistance. Victims will still be able to receive assistance through the Small Business Administration until June 16, 2008. They must complete an application by calling 800-659-2955 or 800-877-8339, for the hearing impaired. Victims can also visit the SBA’s website at www.sba.gov for more information.

A demand for your particular product or service can ultimately make your company be able to have a higher ceiling on prices. High demand depends on the buyer’s perception of quality, limited competitors and consumers not necessarily dependent on obtaining the lowest price in you industry. Small businesses should investigate the demand in your industry and review the profits and costs of running your business. Sometimes small businesses simply cannot avoid having to compete for the lowest price on the market. Price wars can drag a company into a battle that they are not planning on. A price war can wreck havoc in any industry and leave many businesses without enough customers to sustain it self.

There are a few things that a small business can do to try to evade a price war. Businesses should develop a strong brand name on the market. Once your brand is recognizable and trusted, you can stand strong in a price war. Small businesses should be unique so that your business can stand out in the marketplace. Small businesses should consider dropping any unprofitable lines they may be carrying. Products in your business that provide high customer service and maintenance costs are not always the best items to carry and they can force your company into a price war with larger competitors. Businesses that provide products or services that are exclusive to their business can insulate themselves against falling competitor pricing.

Escaping a price war is obtained by having a solid pricing strategy. Leave the price-cutting and price wars to the big businesses.

Ensuring longevity and profitability can be achieved by small businesses, even in today’s tough market. A smart pricing strategy should be used by all small businesses and quite frankly, it could determine your fate.

Many small businesses believe that they must have the lowest price on the market in order to turn a profit. Viewing the competition, and assuming you can gain more business by having the lowest price, is not always the best strategy that a small business can have.

Small businesses who focus most of their efforts on price competitiveness will often find the strategy to be unsuccessful. It is impossible to compete with larger competitors on price alone. Small businesses should look at the demand for their products in the market to determine where they fit in.

Trying to avoid playing the lowest price game should always be a top priority. Small businesses should analyze what type of customers they are serving. Are they a price conscious consumer base? Find out what added services that your company can provide compared to your deep pocket competition.

The highest price the market will bear is called the “ceiling price”. Small businesses should become versed in what the ceiling price is before determining their pricing limits. The ceiling price may not always be the highest price in the market though.

Please check back on Monday for the conclusion to this post.

In continuation from the post on Monday.

The Bush Administration has taken some punches from Velazquez since 2006. She has denounced Bush’s policy that allows Fortune 500 companies to obtain federal contracts that were supposed to be allocated to small businesses. There has never been any legislation by Velazquez to stop the flow of money to these companies, even though she is the chair of the House Committee on Small Business. The new change she is proposing will only help make the wealthy wealthier and will ultimately hurt small businesses. An interesting fact is that The National Venture Capital Association has been one of the Congresswoman’s biggest campaign contributors. It is believed that the change that she is proposing is a reward for the wealthy; who have supported the Democratic Party.

The bill is sure to be rushed through the House in order to avoid scrutiny. They do not want media attention this time around. The American Small Business League is asking that all concerned parties contact their congressman or congresswoman and ask that they oppose changing the Small Business Act’s definition of a small business. Remember…small businesses should remain “independently owned” and operated. That is after all what a small business is….for everyone other than some of these supporting politicians.

For the second time, Congresswoman Nydia Velazquez (a Democrat from New York) is trying to push a bill that will likely spell disaster for many small businesses in the United States. If the bill passes, small businesses will be forced to compete with firms that are controlled by multi-billion dollar venture capitalist firms.

Velazquez is proposing that Congress amend the Small Business Act by modifying the definition of a small business. The current Act has been in force for 55 years. The Small Business Innovation Research (SBIR) Program Re-authorization Act stands to change the definition of a small business, which is currently “independently owned” to instead include companies that are owned by up to 49.9 percent of venture capital firms.

With billions of dollars of federal spending money currently being allocated to legitimate small businesses, there is certainly reason to worry. Competition is difficult enough without having to go up against wealthy investors as well. Will this new change cause small businesses to close their doors because they cannot compete?

The House of Representatives passed a bill in 2007 which contained almost exactly the same wording as this new draft does. It received fierce opposition and died in the Senate Committee on Small Business and Entrepreneurship. Now it seems that it has raised its ugly head once again. This time it is more hush-hush.

Please check back on Wednesday for the conclusion to this post.

In continuation to the post on Wednesday.

Watch Your Space Management.

Nothing is worse than working in an office and feeling like the clutter is closing in on you. Nobody wants to detour around obstacles or trip over something that is lying around. Employees should have a comfortable work space to work within. In good office management, you need to be sure that all the space is utilized with maximum efficiency.

Make time for the grunt work.

Some jobs are just not fun to do and are easily put off for another day. If you have a small business and cannot assign the grunt work to an employees, then set aside a time each week to get it done yourself. Whether the job that needs done is accounting or making cold calls, it is up to you to make sure it happens on a regular basis in order to be successful in business.

Make business planning a priority.

Do you feel like you are spinning your wheels acting and reacting? Successful small business owners spend time each week on business planning. If you have employees, be sure to involve them as well. They may have insight that you have not thought of.

Don’t be afraid to outsource or delegate your work.

Sometimes it is not possible to do everything yourself. It is important to know when the time is right to outsource or delegate your work. Not only will you improve your small business’s office management, but it will give you time to focus on your particular business talents. This of course will improve your bottom line.

Following this plan will help keep office chaos away.

This post outlines seven places to find funding for your small business. It also outlines the advantages and disadvantages of each. At the end of the article there is a list of additional resources. A good read.

Equity Financing
Debt Financing
SBA Loans
Private Placement
Initial Public Offerings (IPOs)
Angel Investors
Personal Funds

Credit to

How to Find Good Money

By Fred White

President Bush today nominated Steve Preston, administrator of the Small Business Administration, to head the Housing and Urban Development Department. Bush said HUD needs stronger leadership at a time when the housing market is struggling.

Read Full Story Here

Small Business Administration chief Steven Preston participated in a live Q&A on Monday to answer question about the small buniness community. The wastingtonpost.com has the full transcript of the call online. You can view it here.

Here is one of the question answered:

Washington, D.C.: How can I get in the queue to get a federal contract?

Steven Preston: We have courses online at sba.gov. There is a lot to know about this process, and you really should rely on our resources to help you.

The DOD has a network called Procurement Technical Assistance Centers that are great to help you.

There are numerous outreach events and conferences–see my earlier comments on two next week.

You can always call our local district office for support here.

Chaos in your small business is sometimes unavoidable, but always regrettable. Nothing is more irritating than working in disorganization and confusion. Here are some tips to help keep the chaos under control and keep all systems running well.

A Good Office Management Routine

Establishing a good office routine is a key element in the success of a small business. Establish a routine for processing paperwork and office systems. Each paper that comes into your office should be handled only one time. The rule should be: Receive it, process it and file it away. Don’t just stack it haphazardly on the desk and create clutter to be dealt with at a later time.

Keep Accurate and Updated Records

Keeping records updated may seem like an easy task, but it is even easier to fall behind in your updating. Updating your company records should be part of a daily office routine. If a customer contacts you, take the time to immediately update their records. If you have a new customer, take the time to add them into your database or filing system. There is nothing worse than having to tell an existing or new customer “I know the information is here…um….. somewhere, I will need to get back to you later.”

Who’s Responsible for This Anyways?

An office can only run efficiently if the employees know who is responsible for what job. When people are accountable for their jobs, they get more things done. With no duty assignments, it is likely that chaos will ensue.

Please check back on Friday for the conclusion to this post.