It's tough

Candelaria Silva — Fri, 03 Oct 2008 20:53:14 -0500

I think we're all going to have to diversify our income streams whether we work for another company or for ourselves.

That's the reality today.

blog.candelariasilva.com

Good and plenty!

It has definitely been tougher!

Kathy333 — Thu, 02 Oct 2008 22:36:45 -0500

I own a small business in California and have definitely seen a slowing down of clients in the past three months or so. I am one of the lucky small business owners who can work out of the home and avoid paying employees, since I work only with contractors on an as-needed basis. It's tough out there. I feel so sorry for small business owners who have storefronts and employees and additional costs, and who are being hit with fewer clients and a horrible economy.

Kathy

Allbusiness:Working Mothers

Mama Marathoner

Kinetic Solutions

Friday Is Usually Pay Day. Will You Get Paid?

Elana Centor — Thu, 02 Oct 2008 21:51:01 -0500

As a business owner there is no greater fear than not having the money in the bank to make payroll. It's a stress that keeps on coming every two weeks.

A couple of weeks ago I was talking to a dear friend who has been in business for 25 years. He just told his staff that in order to avoid layoffs everyone would have to go to a four day work week. It was not a decision he made lightly.

Just this week, Sun Country, a small airlines based in Minneapolis asked its employees to defer 50% of their pay until 2009. While this request was not just based on the tight credit market-- it's parent company is now under Federal Investigation.-- the result for employees is the same -- a lot of pain in the pocketbook.

It's not just an airlines that is having trouble making their payroll-- according to the St.Paul Pioneer Press 22 colleges and universities in Minnesota may not be able to make their payroll because an investment fund they used to meet short -term expenses is closing.

The move prompted David Laird, president of the Minnesota Private College Council, to warn the state's congressional delegation Monday that some of the group's 17 members would not be able to make payroll Tuesday.

"As a result of the frozen capital markets and the failure of Congress to adopt a reasonable recovery plan, many of the members of our association are at the edge of their abilities to adapt," Laird wrote.

By Tuesday, the threat had eased somewhat, as the Connecticut-based Commonfund's Common Fund for Short Term Investments — a widely used liquidity vehicle for universities and private K-12 schools — loosened restrictions a bit.

But colleges remained on alert as they waited to see whether Congress would pass a bill that would restore confidence in the credit markets and speed release of their money.

Writing about the credit crunch for the LA Times, Marla Dickerson, Tiffany Hsu and Jerry Hirsch in today's LA Times shared how the credit crunch is putting small businesses on thin ice.

"Payrolls are getting harder to meet. Cash flow is extremely difficult," Steller said. "I'm getting the feeling that if we don't have sort of a federal deal that a lack of cash flow is going to bring everything to a halt."

Start-ups, manufacturers and construction businesses are in a particularly bad bind, said Scott Hauge, president of Small Business California. Business owners who took out home equity lines of credit to supplement their budgets are hitting a wall as banks begin freezing or restricting the funds. As vendors tighten their credit terms, businesses are being pressed to cover their loans more quickly. Meanwhile, clients are trying to delay payments as long as possible.

Meanwhile, tomorrow is Friday. For many that means it's payday...or not.

Elana blogs about business culture at Funnybusiness

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It's tough

It has definitely been tougher!

Friday Is Usually Pay Day. Will You Get Paid?