This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

3 Things You Should Know About Small Business: May 7

NEW YORK ( MainStreet) -- What's happening in small business today?

1. Small manufacturers' growth challenges stem from a lack of financing. U.S. manufacturing is ramping up but some small manufacturers are having trouble expanding because they can't get financing. According to an April survey by MFG.com, as cited by CNNMoney, 26% of 268 respondents cited "lack of capital to grow" as their biggest challenge. The companies need this money to hire more workers, buy new equipment and aggressively market themselves.

Banks acknowledge they are "proceeding with caution," the article says, "especially with loans to smaller contract manufacturers or 'machine and job shops.'" Some banks are concerned that small manufacturers are too dependent on short-term contract work.

MFG.com is an online directory that pairs businesses with manufacturers that can produce their goods domestically.

2. 3 reasons why your profit isn't growing. Your business is doing well these days as sales rise, but for some reason your profit isn't growing. What gives? It could be a pricing issue. Small Biz Trends identifies three common mistakes that many small businesses make when it comes to pricing their merchandise and services.

First, are you pricing similar to your competition? "There are two basic problems with this approach. The first is the assumption that your competitors are making a profit with that price. Even big corporations can have the wrong price and take a bottom line beating," the article says. "The second problem with this approach is apples, or perhaps I should say apples to oranges. How does their expense structure stack up against yours? Is this truly an apples to apples comparison?"

A second mistake is related to your expenses. Don't assume that a small expense is harmless.

"Consider a weekly expense that is $5. Seems like peanuts in the grand scheme of things. Now multiply that number by 52 weeks, at $260 it doesn't seem quite so small," the article says. "What if you were ignoring five different $5 expenses every week? That's $1,300!"

A third mistake is assuming you work for free. "Look at it another way. What if someone else had done the work? Wouldn't you have to pay them? Calculate the cost of your time (if it helps, imagine you're the employee) and include that in the price. And don't forget to actually pay yourself," Small Biz Trends says.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
C $51.78 1.20%
AAPL $125.09 0.68%
FB $83.89 1.10%
GOOG $552.36 -0.51%
TSLA $182.38 -4.20%

Markets

DOW 17,967.64 +254.98 1.44%
S&P 500 2,070.52 +9.50 0.46%
NASDAQ 4,922.4170 +31.1980 0.64%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs