Small Business Cash flow in 'free fall'

The National Federation of Independent Businessowners (NFIB) new poll offers some insight into how small business owners are dealing with this economic downturn.

Here are a few of the findings:

- 20 % have reduced, postponed or cancelled a planned investment or reinvestment in the last 6 months; the slowing economy's 'free fall' is the primary reason in more than half of these cases. They also show much more prudence in their resource commitments for expansion.

- Increased marketing and sales activity is an often common strategy to combat an economic downturn. However, this is one of the least frequent approaches a small business owner uses.

- 44 % are spending more time at their businesses today than 6 months ago.

- Over the past 6 months, small business owners have become more attentive to cash flow and inventory status as well. Thse actions are key, and should also include cutting overhead and debt.