Small Business Financing -- Four Top Approaches

Small business financing in the Age of Bailouts

We just heard President Obama's speech to the financial world, admonishing them for creating the financial mess we are in and setting out the warning sign that the next time it happens there probably won't be a bailout. He didn't say that, but that is the truth.

It IS small business that has really felt the brunt of the lousy decisions made on Wall Street. It IS small business that can no longer access lines of credit. It IS small business that is having immense problems exporting products.

Each of those small businesses is owned by real people. People who may have also lost their homes due to the greed of Wall Street.

Sadly, however, I don't think it is Wall Street that is going to bail us out. We are going to have to do it ourselves. The fancy execs in their fancy suits and expensive cars wouldn't take so much as a 10% cut in bonuses to provide funds to lend to small business. They are truly Greed Personified.

And the next time they get us in this kind of mess, I'm certainly not going to be so willing to bail them out. Nor, I think, will most other entrepreneurs. If small businesses have to fail, then so should big businesses.

Even now, we are pretty much on our own. In spite of the President's admonishment, I don't really expect any changes from the self-serving SOBs on Wall Street.

So what can we do about small business financing? Here are a few quick ideas:

BOOTSTRAP GROUPS. Join a bootstrap group if you haven't already. These groups are composed of small businesses helping small businesses. Ask when you need something, and be willing to provide help too.

WORK THROUGH YOUR REPRESENTATIVES IN CONGRESS. Work with others in your geographical area to tell your Representatives and Senators exactly what is happening in your area. Can't get loans? Document your case and send it to your representatives. If anyone has influence with local bankers, it is your Representative.

SHARE STUFF. You don't need your whole warehouse right now? Rent out part to another business. Likewise, don't be shy about renting part of a warehouse for your own business. This is the Age of Ingenuity not the Age of the Braggard, so be as ingenious as your can in running your businesses and cutting costs.

PETITION YOUR CITY COUNSEL. This is another group that should respond to the needs of small business. If you go out of business, the city loses tax revenue. Let them know what you need in terms of loans and/or other assistance. Get them on your team.

One more thing: Watch for ads promoting small business. There are a few banks that I have noticed lately that are looking to attract more small business clients, such as Bank of America and Wells Fargo. There may be more out there. When you see these, ads, support those companies. You may not qualify for a loan, but you can open a checking account or have them process your payroll. Give them whatever business you can.

These steps won't guarantee that your business will be successful, but they sure will help. Small business financing is never easy, and the past year has made it nearly impossible. Now is the time to show the country just how creative we are.