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Small Business Loan Defaults Threaten Massive New Wave of Unemployment

I thought I’d share my latest press release with you, as small business is really hurting as small business lending dries up… now is the time to take action.

(PRWEB) July 30, 2009 — First it was Wall Street. Now it’s Main Street that’s being buffeted by the economic crisis. But while Wall Street was bailed out with Federal stimulus money, there is no stimulus plan yet for the small business sector, which traditionally employs 95% of the American workforce. Countless small businesses are defaulting on bank loans, seeing their credit lines cancelled, closing their doors and laying off employees.

And that failure rate is skyrocketing threatening the economic recovery.

“The problem is really two-fold,” says Janet Switzer. “Current loan customers are failing to make their payments to local banks–which means banks not only have less money to lend to other small businesses, they’re forced to modify the credit lines they’ve written already. Add lower consumer spending to the mix, and small businesses just can’t get enough cash to keep their doors open.”

Only two choices face most small businesses now, says Switzer. “You can cut costs and reduce the business to a shell of its former self–or you can re-focus your entire company on creating cash that will replace falling sales and begin a new growth pattern. Too often, businesses fall into a routine where the majority of the focus in on maintaining the business–not on growing it.”

When slow times come, this “maintenance mindset” is not only hard to shake, it actually hastens the decline of the business as it prevents the owner from changing with the times.

“Fortunately,” says Switzer, “there are steps you can take.” Switzer’s upcoming Instant Income ProgramĀ  helps small businesses create cash now, but also establish cash-producing systems in their business to prevent the need for stop-gap, emergency measures in the future. But before that program is available in late August, Switzer is making available her free Instant Income 10-Day Turnaround Program to help small businesses create emergency cash.

What are steps a business can take to create cash now?

1. Generate new customers through direct-response advertising techniques and other prospecting strategies that cause an immediate response from consumers. Make specific offers in your ads for appealing product or service packages.

2. Create a three-page Internet selling system that compels visitors to opt-in for a free download, then sells them on an entry-level product or service.

3. Get your sales force focused on following-up on leads–downselling prospects into less expensive packages if necessary. If you’re a solo entrepreneur, use voice broadcasting and email to follow up yourself.

4. Start monitoring your business’s key profitability indicators. If something’s not profitable, stop doing it. If something is very profitable, expand it.

5. Assign new-business development to a single staff person whose job it is to recruit referral sources, develop more distributors and dealers, find non-traditional sales opportunities and pursue other expansion strategies. In addition to the free Instant Income 10-Day Turnaround Program, her free Instant Income Planner describes 10 immediate expansion strategies small businesses can implement now.

6. Start using smart media strategies to garner free publicity in your local market. Determine what’s newsworthy about your business, tie your product or service to current news story or trend–then work with local editors to get an article in your local paper. Use Internet distribution of articles to drive sales by phone for unique product bundles.

7. Re-configure staff positions to create an offline promotions manager, Internet promotions manager, affiliate manager, and other jobs that can initiate cash-flow producing activity. Or use pay-for-performance hiring strategies to bring on cash-producing professionals for the first time.