Economic Uptick Catching Some Small Businesses Off Guard
The Wall Street Journal reports this week that the current uptick in the economy has found some small business owners unprepared:
After months of hunkering down, some small companies are finding themselves ill-prepared for upticks in business. Many are short on cash or lacking lines of credit; others have eliminated staff positions or gotten rusty at networking or hustling potential clients. “Some of the companies in our portfolios are seeing signs of improving demand,” says John Nowaczyk, vice president of equity firm Milestone Partners in Saint Davids, Pa. But with many lacking working capital, recovery has “caught them unawares,” he says. …
Some businesses are laying the groundwork now for when economic conditions improve. Karyn Korteling, owner of Pastabilities restaurant in Syracuse, N.Y., has wanted to open a second location for months, but needs a line of credit to do so. She has been meeting with a manager from her local KeyBank branch several times a month to discuss expansion plans and seek advice. “The more they know you and your business, the better that they can guide you,” she says.
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