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Economic Forecast for Small Business Owners Indicates Opportunity in 2010

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By Eric Hubbs

How does the saying go, "Don't count your chickens before they've hatched?" This seems to be the theme of our current economy. Word on the street is it's getting better and that there is a visible growth trend; however, it's crucial for business owners to understand what is generating the momentum and to remain cautious and calculated in our financial decisions - as difficult as it may be.

Beacon Economics presented their 2010 San Luis Obispo County Economic Outlook at the Paso Robles Event Center yesterday. Principal Christopher Thornberg and Director of Regional Research Brad Kemp spoke to a group of Central Coast professionals and delivered their economic forecast. While optimistic about the trends and growth, they remained realistic that we are not out of the woods yet. The primary sources of the spending increase are not sustainable. The equity market is up - good news - but based on the facts, the P/E ratio is overvalued, and it is evident that the market is not consistent. Even with the impact of the government stimulus, of which less than half has been spent, it's just a cushion for the moment, not a solution. And it's not an infinite resource. If we do not make educated decisions right now, we may find ourselves backpedaling.

They cited serious structural problems, a politically motivated band-aid covering the severe financial wound. Rob Garcia of Rob Garcia Wealth Management compares it to a poorly run business thriving in a good economy - the problems don't surface until bad times, and then it becomes that much more difficult to save the struggling business. He said until structural adjustments are created and implemented to improve the business operations, "it's like kicking the can down the street."

That's not to say there is no hope, because the good news is - there is! There is opportunity, and it takes creative actions to recognize and capitalize on them. Although numbers indicate San Luis Obispo County has experienced an extended recession, greater than surrounding counties, they also indicate we have faster recovering markets within arm's reach. Businesses within San Luis Obispo County can target these outer local markets and tap into their potential. Utilizing powerful resources to gain real knowledge and understand the present trends is vital, and can have a tremendous impact on the success of your business.

To help you make more educated decisions, view or download the 2010 San Luis Obispo County Economic Outlook presentation by Beacon Economics at http://www.beaconecon.com/.

We want to hear from you. Please share your thoughts, reactions, and creative solutions by commenting below.

Sustain Your Business using these 4 Steps

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Jennifer Porcher, Vice President of Educational Services at Collaboration 

Business Realities, Meet Personal Vision

Have you ever found yourself faced with the burden of having more business than you can handle? Maybe you have experienced the feeling that you cannot control the growth of your business and that you have a shortage of management expertise. You used to think that you controlled the direction of business, but lately your clarity has become muddled; you're working more hours in a week than you prefer, and you're lacking time for other life responsibilities. Maybe your business has simply outgrown its original business plan and the existing business structure no longer supports the current level of operations.

So where do we go from here?

Step 1: Refocus and redefine your personal vision and long-term goals. How are daily operations impacting the basic personal needs that are most important to living your vision?

Step 2: Review your individual reasons for starting a business. Determine whether power, status, or a desire for control and recognition drive you.

Step 3: Decide if your intent is to operate a business based on growth or lifestyle.

  • A growth business may sound ideal, but often times the demands of operating a fast-growing company can make it challenging to balance personal and professional lives.
  • On the other hand, a lifestyle business can be limited in size and limited in growth potential.

Step 4: At this point you must choose a business path that best suits you and stick to it. Your goal is to thoughtfully make decisions based on your ultimate purpose for being in business, as defined by your personal vision.

Download an expanded version of these steps to find out the solution to balancing your business life.

The Bottom Line:

The business can take on a life of its own if not properly directed by its leader. This is a fine line to walk and requires the utmost care when you have important business decisions to make.

Don't be afraid to ask for an outside perspective. Talk with someone who can help you to separate the facts from the feelings or recognize emotion among all the fine details. Involving an outside party is a great way to ensure your personal vision becomes your business reality.

Sign up for a Free Hour Business Consultation and let one of our Collaboration Certified Consultants help you determine the right path and structure for your business.

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