I had a friend who had a successful bakery that she opened with very little business experience. She took a business course offered to existing business owners, and she learned a ton. She learned so much that she went back to her bakery and shut it down, realizing it would never provide her the lifestyle she wanted.

She was tired of putting in 60 hour weeks for not a lot of pay while her other skills got her much better paying jobs with less hours.

It sounds like you’re really on top of your numbers, which puts you ahead of a lot of small businesses. I think you are doing what you need to do. Cutting costs and making sure cash flow is not interrupted. The only other thing you can do is to do as much free to cheap advertising and think outside the box to drive sales during this downturn.

If you believe in your business, taking out a loan can get you through the rough patch. I’ve borrowed heavily over the 24 years I’ve owned my business to keep it afloat. It’s not ideal, and I don’t think I’ll ever have to do it again, but when you are just starting out and don’t have significant cash reserves, it can work if you are careful. Small business owners are some of the biggest gamblers. Except you are gambling on your abilities and not just luck.

I love my gold Amex card, but you have to be disciplined with it. You pay it off monthly, and if you don’t they will destroy your credit. However, their is a hidden limit that is very high. I had them call me once to see how they could help me with business, and they revealed to me I had a +$300k limit. And he said if I needed more, I could just call. So, if you have a big deal come through, and you are 100% sure you will be paid in 30 days, it’s very convenient. Just have additional cash to cover it if customers don’t pay.

I use it to buy pretty much everything for my business. I currently average $70k a month on it, but some of my highest months were $150k. I’m using points to pay for a vacation for my wife and I this year, and the reward points Home Depot gift cards have paid for things like a bathroom renovation in the past. Other cards have serious rewards, but I just like the flexibility and how I cannot go into debt with it.

Read the the book the e-myth. It basically covers the progression from technician to business manager.

And, you might not be putting money in your new business, but you have opportunity cost you are losing by not having another job. You time is worth money.

By the way, this is basically how I started my business 22 years ago.