38% of small businesses say they won't survive 2009

An incredible 38% of small businesses predict that they will not survive through to the end of 2009, according to an article in today's Financial Mail on Sunday.

Given that there are something like 4 million small businesses in Britain, that's something like 1.5 million businesses which may go under - with the knock on effect of redundancies and creditors being left unpaid.

As I've said elsewhere on this Blog, this country's economy is in serious trouble.

What the above does mean is that there is also tremendous opportunity - in the small business sector - either to help those ailing businesses or to assist the failed entrepreneurs phoenix themselves into new ventures.

Meantime, back to basics business rules now apply. Be careful who you give credit to. Defend cashflow. Adapt your offering to ensure it is still what customers want. And become as flexible as possible so you can move quickly to cut costs if you need to.

Time to batten down the hatches methinks - it's going to be a tough year, but also one of great opportunity for those well prepared to weather the storm.