Small Business Finances: The Top 10 Things to Consider When Researching 2010 Economic Predictions

I recently blogged about how economic predictions for 2010 will affect your small business. I talked about how it's important to look at these financial forecasts on a micro level - as it affects your own financial situation.

With that said, the following list of things to consider when researching economic predictions may involve some of your own investigation. My prediction for 2010 is that the new trend is to take personal responsibility for all aspects of your economic interests and involve yourself in critical decisions. We have seen the dire consequences of blindly following complex and many times deceptive economic strategies and investments few people really understand.

Here are a few areas to research as you evaluate financial predictions for 2010 from a Micro economic perspective:

1. Your Industry: How deep is the economic contraction in my particular industry? Do the research to find out. 

2. Your particular business: How healthy is my particular company? Are the sales steady or in rapid decline? What about profits?

3. Your Job: What is the prediction you particular job will be eliminated? What are the unemployment statistics in my industry...a good predictor of my job loss prospects.

4. Your opportunities: Which industries, businesses, or sectors are doing relatively well and could offer cross over skills in case your industry is weak and declining.

5. Your Investments: Is your financial strategy diversified as to investments. Are you chasing trendy returns where you could experience massive, unexpected losses. Are your investments in vehicles out of your expertise?

6. Your liquidity position: Based on your economic prediction do you have sufficient cash reserves or working capital to weather a transition to a new job or break into new markets. If not, then is now the time to increase credit lines while things are still good before problems make credit unobtainable?

7. Your Assets and Balance sheet: What is the value trend in you particular assets. If the asset value is at risk is now a good time to liquidate to raise cash reserves or are asset values so low it is best to hold on to them and wait for a general increase.

8. Additional Income: What are the trends in additional income streams from related part-time work or business development.

9. Your Health Insurance: Is your insurance sustainable if you loose your job. Should you have an individual plan that is portable and sustainable without a job. what are the trends in this field.

10. Interest rates: Are these historical times of low interest where it is wise to refinance mortgage debt or purchase durable goods that are needed sometime in the near future now due to buying opportunities and savings.

2009 was a tough year for many. When looking at your personal and small business finances, keep in mind that there is sound alternative financing available to you—especially through asset-based loans - if you are proactive about your situation. Businesses that need financial restructuring work can seek out small business financing through alternative lenders to help them make it through the downturn.

Since 1998, US Capital Partners has been providing prompt, innovative, and reliable financing solutions including lending, corporate financing, and debt re-structuring to businesses across the United States and abroad.
If you are looking for financial support, visit US Capital Partners, Inc. at or call (415) 882-7160.