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Small Business Survival

September 3, 2010 by Paul Rauseo  
Filed under National and Global Economy, Small Business Survival

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Profit Engineer advises small business owners to not cut their own throats!

Every small business will have setbacks on the road back from the recession. Short profit years may influence a small business owner to cut back on unnecessary expenses, reducing inventory, employees or the amount spent on certain services. Owners must evaluate advertising dollars first. A small business owner can discover their average cost for a new customer by calculating their cost for advertising and the number of new clients that reach their store. If a small business owner spends fifty dollars for one new customer, then they must adjust their advertising campaign to lower the cost per customer. Although difficult to find out, business owners should not overlook this calculation. It may well be that small business owners have cut their very lifeline!

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