The Tale of Two Economies

While larger businesses are starting to recover, the small business is still under tremendous pressure.


Jan 10, 2011 – As we enter 2011, we are seeing an unprecedented and ominous pattern in relation to business: “The tale of two economies” where there are two separate trends occurring:

  1. Large companies are seeing a slow, yet upward ‘recovery’. Some factory orders are up from their all time lows, and there is a small increase in the consumer confidence index.
  2. Small businesses, however, are not enjoying the same indicators as their larger counterparts. The number of small business that either closed their doors or declared bankruptcy in 2010 hit a recent record – the many business owners who “survived” 2010 are now looking for any signs of increased business. Meanwhile, they have copied the same tactics as the larger companies, thereby slashing overhead, payroll, and other costs. Shareholders are seeing the benefits, demonstrated by rising stock prices, which we believe will continue not withstanding any global economic events.

Due to the economy, our business at Valcor has never been in more demand. While working with small business owners, we’re hearing concerns across the board:

  • slowdown in receivables
  • lack of financing options
  • increased cost of goods and services

At Valcor, we help business owners by providing business debt mediation services. We take the pressure off our clients’ businesss and work with their creditors to resolve problems outside of court without costly litigation. We may also be able to secure financing that provides continuous working capital. Capital sources include leasing, factoring, loans and financing vehicles. In many cases, Valcor can even help clients who are unable to secure financing on their own.

Due to the local business climate, Valcor is now training new consultants who are looking to start up their own full service financial consulting business. Valcor consultants work with small business clients and Valcor’s network of capital sources to keep viable small businesses afloat.

in an interview on Money Matters, Valcor CEO David Sussman stated, “Small business owners are under siege. They have reduced expenses, laid off employees and tried to work with their vendors to prevent litigation. Now, with no cash flow, they are finding their backs against the wall. These are good people who have started, grown and reinvested in a business.

“It’s an emotional and highly stressful time,” he continued. “We take our role very seriously in helping these businesses get through these challenges. The result is that the business stays solvent, is able to continue working with their vendor or bank and in most cases, have not had to lay off their employees. It is undoubtedly rewarding and gratifying.”

If you’re ready to start your own business helping small businesses in your community, contact Valcor about this consulting business opportunity today.

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