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Opportunities still exist for small businesses to grow, despite an overall slowdown in the economy, according to Wayne Best, senior vice president of Business and Economic Analysis for Visa USA. Best struck a note of cautious optimism in his keynote presentation at the Microsoft Small Business Summit, based on his analysis of macroeconomic trends, Visa spending data, and small business studies.

As a hedge against current economic uncertainty, Best identified four tips for small business owners: 

·        Improve cash flow management – Managing cash flow is the most important challenge facing small businesses. This is particularly relevant in an economic environment where customers are sensitive to price increases and are seeking to delay payments. “Business owners should look at payment solutions, such as payment cards, that allow them to time cash outlays and reduce the headaches associated with managing account receivables,” Best said. 

·        Adapt to a tighter labor market – Small business owners should conduct employee searches through new channels and implement innovative approaches to retaining valuable employees. Today’s technology allows small businesses to harness the Internet to recruit new employees and clearly delineate the advantages of working at their small business on a real time basis.

·        Make smart investments – This is a good time to make smart investments in business expansion or upgrade the infrastructure, such as with technology. Investments that have a quick return can be achieved under the current moderate interest rate environment. These returns can include productivity improvements that are attributable to investments in selective software and hardware.   

·        Practice financial flexibility that will lead to business stability – Small businesses need to adapt to the changes in the economy by choosing financial products that are best suited to their business needs.

“Small business owners are at the forefront of the U.S. business landscape and therefore are excellent barometers of our economic health,” Best said. “While economic indicators point to a slowdown in the economy, small business owners, who are the engine of our economy and are natural innovators and optimists, clearly see the glass as half full, rather than half empty.”  

Visa USA is a leader in small business solutions, surpassing $100 billion in annual volume in 2006. For more information, visit www.visa.com