Business Survival Guide: Managing Profitably through Changing Times

Lin Good, a consultant, was Associate Librarian at Queen’s University.

There would seem to be a market for this book. According to Farvolden,
in 1991 there were 13,000 business bankruptcies and approximately 60,000
personal ones. Today’s economic climate is little better, and many
businesses are struggling to survive against the odds.

Instead of magical solutions or remedies Farvolden offers practical
comments on planning, managing assets and liabilities, being alert to
signs of trouble, and responding promptly. He emphasizes that, in
specialized areas such as legal or financial rights and obligations, the
wise manager turns to a lawyer, an accountant, or the bank manager
rather than worrying and delaying action.

A recent analysis of business bankruptcies showed that firms owned by
men were more likely to fail than those owned by women. One explanation
was that women, being more cautious and also finding it more difficult
to get substantial loans from banks, are less likely to be burdened with
high debt overhead. This last point is often the decisive one in a
crisis. As Farvolden states, “debt will literally crush the equity”
and the “business will come tumbling down.”

It is difficult to see from the text what the author defines as a small
business: obviously not a big corporation, but a small firm with fewer
than 10 employees is significantly different from one with 100. Much of
the information seems inappropriate for the former, and unnecessary for
the latter, who may have resources at hand within their organization.
However, this book could prove useful to students or those who are
considering starting a business. There is nothing especially novel or
imaginative in the book, but it is a capable distillation of generally
accepted advice, presented clearly and arranged logically for quick
reference.