California is something of a mixed bag when it comes to economic conditions. On the one hand, the state boasts the largest state economy in the country - and the eighth largest in the world - but it also has one of the three worst unemployment rates in the country, a business community that's in flight and a small business community that is surprisingly loyal.
Small business bankruptcy filings in the Golden State accounted for nearly 20 percent of all filings in the U.S. last year - a condition that, coupled with a brutal credit crunch, has caused many business owners to seek alternative financing options.
Entrepreneur magazine contributor Bob Reiss advises new business owners and startups to consider organic growth when they first start out. This is admittedly a difficult task in California's rough small business market, but with the right ingenuity, the experience it generates can be invaluable for incorporation in California.
"Scale back on your plans for quick growth and focus your efforts on organic growth where your profits are reinvested in the business as a substitute for raising capital. It is a slower approach, but it can be more profitable and less of a strain on you and your company's well-being," Reiss writes.
Tags : ca, financial management, small business management
Posted: Mar 23rd, 2011