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Operating a successful business in today's economic times is difficult, even for a well-managed company.� Now, add the complexity of the worst recession since the Great Depression.� It is no surprise that commercial bankruptcies, among the nation's more than 25 million small businesses, have increased by approximately 44% from the third quarter of 2008 to the third quarter of 2009, according to Equifax Inc.� So what is a business owner to do?� Avoid these SEVEN DEADLY SINS!

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1.Cash Flow.� "Cash flow projections are too complicated to prepare and even more complicated to understand.� I don't have the time or the money to have one generated periodically."� If I had to pick THE DEADLIEST SIN, this would be it.� Too many business owners become so focused on generating sales or cutting costs, they lose sight of their cash.� Before they know what happened, they find they can't make payroll or pay their suppliers.� The business comes to a grinding halt until this problem is resolved, or it eventually becomes another bankruptcy statistic if the cash flow problem is not resolved.

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2.Banking Relationships. Banking relationships are critical in both good times and in bad.� Your banker needs to be treated as a Partner and not an adversary to your business.� When times are good, everyone will be knocking on your door offering banking services.� When you need them the most, it's critical that your banker not only understands your business, but understands you as a manager and a person.� Part of this relationship is to be sure that there is a suitable line of credit in place to support your current and projected cash needs.� As indicated above, you are never in a position to go to your banker when your business is about to crash.� Nobody will invest in a sinking ship.

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3.Employees.� The greatest asset of any business is not even reflected on the financial statements.� The employees are always the MVP of any organization.� Treated properly and given financial incentives, a good employee will give you the best return on investment (ROI) of any other asset you may have purchased.� They can increase sales, increase productivity, reduce expenses, promote and help market the company.� In contrast, a bad employee can bring a company to its knees quickly.

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4.Controls and Processes. Establish sufficient internal controls and procedures to protect the assets (particularly cash controls) of your business.� Many small and mid-size business owners are so focused on the development and expansion of their company that they lose sight of protecting what they already have.� While trusting your employees is a must, don't lose sight that there will always be a hidden worm in the apple.� According to a 2008 study by the Association of Certified Fraud Examiners (ACFE), small businesses are especially vulnerable to occupational fraud. The median loss suffered by organizations with fewer than 100 employees was $200,000.� If you don't have the expertise to implement policy and procedures to segregate duties and have checks and balances, spend the money to have an expert do this for you.� Consider it an insurance premium that will pay royalties.

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5.Customers.� Spend the time and resources to better understand the needs and concerns of your customers.� Years ago, the business marketplace was smaller and finding companies to provide products and services was a more regional effort than in today's environment.� Customers were "forced" to accept less than top quality service because there were fewer alternatives.� Today, even with small companies having larger markets through technology and a more global presence, competition among service providers has become even fiercer.� The only way to retain (and grow) your customer base is to provide a product/service that meets their needs.� Obviously, the first step is to truly understand their needs and adjust your business accordingly.

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6.Financial Statements.� Most small and mid-size business owners have started their business because they have a knowledge or expertise in their particular product or service.� Unfortunately, they don't take the time to understand the financial side of their business.� Every business owner must be able to read and comprehend a basic set of financial statements, including other statistical data that drives their business.� These reports are the scorecard that drives the business.� You need to be sure that you receive them on a timely basis and that they're 100% accurate, and you're able to analyze and digest the information.

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7.Delegating and or Outsourcing.� "I'm more qualified to perform most jobs in my company" OR "I can't afford to hire someone to do the administrative jobs, � so I do them myself."� You can't do it all.� The quickest way for a business owner to drive his/her business into the ground is to spend too much time on administrative tasks.� The amount of time spent on the admin functions is that much less time spent on growing the business and developing strategies.� Leave the admin tasks to the administrators.� It will be the best money you've ever spent.

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While every business has its own personality and style, any one of the seven sins above can take a deadly toll on the future of the company.� Get some religion and avoid the sins.

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