How insight from a big business survey can help guide small business plans

Times are tough and businesses are getting creative in an effort to boost revenue, retain employees and ultimately weather the recession.

According to a new survey by Financial Executives International and Baruch College's Zicklin School of Business, chief financial officers remain largely pessimistic about the general economy in the U.S., but are starting to feel more positive about their own business prospects.

To avoid cutting jobs of valuable and often times loyal employees, a number CFOs are taking some unorthodox steps to cut costs including instituting salary freezes, shortening the work week, mandating unpaid time off and letting some professionals telecommute.

But CFOs are also looking to their advisory board for help, says the survey. Nearly 54 percent want their board to act as a partner in wading through the murky waters of a down economy.

This insight from bigger businesses is also good advice for small shops, say a number of experts.

Advisory boards for small business are typically made up of a number of community members with no financial affiliation to the company - perhaps an accountant or retiree from the same industry.

An article earlier this month in the Chicago Tribune said that an advisory board to a small business could help the owner brainstorm new ways to boost sales or help the company change direction if need be until the economy picks up.

The survey of CFOs by FEI and Baruch shows that nearly 20 percent of respondents hope a board would serve as a sounding board for concerns. Just about half of the CFOs surveyed want the board to "collaborate more on solutions to deal with present circumstances."

Having a panel of experts with a keen interest to see a small business grow and prosper is very important during these unprecedented economic times.

Ellen Rudnick of the University of Chicago Booth School of Business said boards can help businesses broaden their network which could lead to new opportunities. A group of people "you can bounce ideas off of" is a good idea, she said in the Tribune article.

The growth and success of small businesses are critical to both the U.S. and Canadian economies. Small businesses are often considered the backbone of an economy and key sources of jobs for millions of individuals.

---------------------------------

Copyright NEBS Canada Business Products.