CashMachineHackHoax: Is Your Company Due for a Price Hike? AllBusiness Weekly, 6/9/11

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Weekly

The best news, analysis, insight, and inspiration from the Internet's largest small business resource.

June 9, 2011

A Tale of Two Realities

It was the best of times, it was the worst of times.

No, it's not A Tale of Two Cities, but a tale of two kinds of small businesses. In this half-hearted recovery from the Great Recession, it can sometimes seem like small businesses are living in two completely different worlds.

In one world, unemployment remains sky-high, small businesses are struggling to raise cash or get loans, commodity costs -- think gasoline -- are rising, but most small businesses can't seem to raise their own prices, and even businesses that need to hire remain terrified of pulling the trigger.

In contrast, the go-go entrepreneur world seems to be going great guns -- led by the excitement around social media and mobile computing. LinkedIn's IPO was a smash hit, and now everyone from Zynga (AllBusiness.com's roommate, if you can believe it) to Groupon is lining up to be the next to cash in. In this view, we're in the midst of a new boom (don't say "bubble") and the future's so bright, entrepreneurs have gotta wear shades.

Don't take either viewpoint without a few boulders of salt. Sure, things are still tough in many places, but alternatives to traditional credit markets are finally emerging, people are getting hired, and people will pay more for products and services they care about.

And sure, some high-tech entrepreneurs are getting rich, but the gravy train doesn't run forever. Already, Internet wags are dubbing the latest IPO bids "GrouPonzi schemes."

So it pays not to get too excited, or too despondent, based on the latest news. For the vast majority of businesses, the reality is much more complicated, and your company's future is most likely somewhere in between today's extremes.

Fredric Paul
Editorial Director

Is Your Company Due for a
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FREE DOWNLOAD OF THE WEEK!
Employee Performance Appraisal

Having a clear and understandable performance appraisal form is important for all business owners with employees. This tool will keep the appraisal process organized and professional. Click to download for free.

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