"Deb's Desk"

The economic downturn might make raising capital seem more difficult, but smart entrepreneurs can still find money to get their projects off the ground. If companies have liquidity in their stock, they can use their stock as collateral for loans. "Insiders, non-affiliates and common shareholders pledge their stock as collateral for a stock loan and then loan the money to the public company," explains Michael N. Brette, CEO of MB Private Equity, LLC, a company that provides direct funds to businesses. "The shareholders can receive more equity, options and warrants from the company in exchange for the capital. This is better than private investment in public equity, or PIPE financing, because it does not require any registration statement to be filed. You can save a lot of money right there," says Brette. Stock loans offer investors several other advantages. First, they prevent stock from entering the market. When a business floods the market with stock in order to raise capital, it also dilutes the value of its stock. With stock loans, businesses can raise the cash they need to carry out basic operations without devaluing their stock. Second, stock loans eliminate margin calls. Should the stock go down in value after it is loaned, shareholders can walk something that would be impossible if the stock were sold. Stock loans are not reportable events. The loan-to-value ratio can be 50 percent to 85 percent. There are no credit checks, no tax returns and no personal guarantees. Stock loans can be used to buy businesses, pay down personal or corporate debts or make investments.

As the year turns, small-business owners will start reviewing their past actions and planning for the future. But one big issue - payroll - can prove to be a problem every year. Many businesses find themselves in trouble with the IRS, not because they're dishonest, but because they miscalculate numbers or miss due dates. The government's financial penalties can be unwelcome blows to small businesses. Even if a business employs only one worker, small-business owners can find federal and state employment forms complex and demanding. Some small-business owners might believe that they can save time and money by performing their own payroll calculations, but it's usually in businesses' best interest to hire outside payroll service providers. Small-business owners need to concentrate the bulk of their time and attention on making their business successful. Paychex, Inc., a national leader in the payroll and human resource industry, offers these tips to small-business owners looking for a reliable payroll-processing service: - Insist on personal service. For best results, you should be talking with the same payroll representative each pay period. That same person should handle any questions or concerns about your service. - Look for national payroll-processing companies. National payroll service providers are bonded and insured, so any liability for inaccuracy or fraud will not affect your business. - In the event of a natural disaster or other calamity, national providers often have multiple backup systems to preserve data and deliver payroll packages on time. Paychex employs a rigorous backup plan to ensure continuity for clients across the country. Moreover, national providers offer the best confidentiality and security, and payroll deposits are taken care of electronically. - Look for payroll service providers that also offer human resource services. Integrated HR services might include 401(k) administration, workers' compensation insurance administration and payment services, health benefits and other employee benefits such as flexible spending accounts and bonuses or other compensation paid on debit cards. "Small-business owners can realize a new level of productivity and convenience when they choose to outsource their payroll function," said Walter Turek, senior vice president, sales and marketing for Paychex. "Outsourcing ensures accuracy, timeliness and peace of mind, allowing business owners to focus on growing revenue, instead of worrying about administrative burdens."

In 1998, Stan Thomas thought his truck-side marketing company wasn't going to survive. His business, which uses a special adhesive to fix vinyl ads to the sides and backs of trucks, looked deep into debt. Cutting payroll and expenses didn't help - joining a barter network did. A savvy business owner, Thomas used barter, a cashless system of exchanging goods and services, to boost his business. "I took barter from a casual asset to an integral part of my business," says Thomas, "and it did save the company from bankruptcy." Today, Magellan Transit Media (www.Magellan-tsa.com) is a leader in its market. Barter, the world's oldest economic system, isn't some antiquated throwback, but a thriving solution to today's economic troubles. Modern companies pay commission fees to join sophisticated business-to-business networks. They receive trade credit based on the dollar value of their products, then use their trade credits to "purchase" goods and services from other companies. Business owners don't have to use cash, so they can reduce costs and avoid debt while still supplying their companies. Thomas joined a corporate barter network called NTA Trade (www.ntatrade.com), the corporate barter division of International Monetary Systems (IMS). IMS is the largest publicly traded barter company in North America. He opened a barter account with $50,000 in credit, studied the other companies in the barter network, and bought office supplies, cameras, computers and travel certificates with his trade dollars. Today, Thomas uses barter to cover $500,000 in advertising, airfare, hotel stays and other expenses each year. While other companies slash advertising expenses in times of economic trouble, Thomas' company still operates normally. Learning how to barter well in various business situations takes time and patience. "Barter is not a perfect world," says Thomas. "But we think barter all the time. When I talk to people about barter, I say, 'If you can spend your barter, be happy. If not, spend your cash.' Barter is another form of currency, and I always try to trade value for value."