Wednesday, November 12, 2008

Small Business Owners Risk Losing It All

Many small business owners are at risk of losing their home and everything they own if their company fails, new research has revealed.

A survey by the Federation of Small Businesses (FSB) of more than 8,500 members found that 49% are keeping their companies going by putting their possessions at risk. Many small businesses are run from the owner’s home, which means that their dwelling is part of the assets of the business.

The FSB was concerned enough by the findings of the survey to appoint a professor of small business who will be able to assist companies in this period of economic turmoil. The new man is Professor Anderson. He says the survey’s findings are a concern and showed how small firms were putting themselves ‘in the firing line’.

His initial general suggestions are for companies to keep a close eye on their cash flow, to build up a relationship with their bank manager, and to add value for their customers in ways that only small businesses are able to do.

Separate research has revealed that 470,000 small businesses have gone to the wall since the credit crunch began 15 months ago.

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