There are no headlines when a restaurant cuts ten people or the local print shop cuts five. If fees fall at a doctor's office, the receptionist may have to leave.

By most estimates, small businesses, those with under 100 workers, employ 50% of the American workforce. While the announcements of banks and car companies cutting tens of thousand of employees make the front page, the economy may be hurting more by the declining revenue and credit crisis at firms no one has ever heard of.

According to Reuters, "Wall Street's pain is rippling through U.S. small businesses, as bankers who once pulled in million-dollar bonuses lose their jobs and cut back spending on everything from parties to home improvements."

This may point to the fact that the bailout is being aimed in the wrong direction. While $700 billion may help large financial firms and may even be used to save tens of thousands of people from home foreclosures, there is nothing concrete being done by the federal government to help the small business owner.

What could be done? For starters, The Small Business Administration, a federal agency, should be assigned some of the $700 billion Paulson package. Credit-worthy companies should have access to that in the form of loans. Doing this would require far more people than the SBA has, so it would need to be done through the banking system. Banks should be given financial incentives to lend money provided by the fund.

The government is overlooking one of the most critical parts of the economy. In doing so, it is almost certainly helping unemployment push above 7%.

Douglas A. McIntyre is an editor at 24/7 Wall St.

It's been "shock and awe" for the financial system over the past few months. Even seemingly invincible companies like GE (NYSE: GE) and Goldman Sachs (NYSE: GS) have not been immune. As a result, there has been a tremendous deflation of equity values across the globe.

Unfortunately, the game has also changed for your business. It's much more difficult to get debt or equity financing, and it may even be impossible, at least for now. Customers are having difficulties paying invoices. And, as for finding new customers, this is particularly tough.

So, in light of everything, what is the value of your business? Well, keep in mind that, for the most part, the value of a business is dependent on its cash flow. So long as this remains strong and long-lasting, you are likely to weather the storm. If anything, you could be in a nice position to capitalize on the situation, such as by buying companies, hiring employees and in making new investments.

But this is the rare exception. In fact, even some of the growth darlings are having issues. For example, the data service, VCExperts.com, has recently launched a new offering – called the Valuation Ticker – that provides valuations of venture-backed companies. Essentially, the system compares private companies to public indexes, such as the NASDAQ and S&P 500. Here's a look at a sample, with valuations over the last ten months:

• Facebook: $12.4B (12/31/2007), $6.9B (10/31/08) -- 44%
• Slide: $545.2M (12/31/07), $376.6M (10/31/08) -- 31%
• Yardbarker: $18.1M (03/03/2008), $14.2M (10/31/08) -- 22%
• Going: $21.9M (5/07/08), $15.2M (10/31/08) -- 31%

This week, I received a number of calls from friends and family about the incredible events in the financial markets. I've tried to be optimistic, but it wasn't easy. Every day, there seemed to be a new avalanche of bad news.

So what does this all mean for your business?

Well, I think it's critically important to be careful and conservative. Basically, assume the following:

• It's going to take longer to raise capital -- and the terms will be tougher.
• It's going to take longer to get customers.
• Oh, and customers will take longer to pay you (and that's assuming they actually do pay you).

In other words, you need to find ways to manage your cash flow. You can use some nifty online tools, such as NetBooks. There are also some great books on the topic, like Tim Berry's The Plan-As-You-Go Business Plan.

And another thing: Be sure to focus on your existing customers. In tough times, it can be easy to lose them. And, of course, it's always expensive to get new customers.

Over the past couple years, major players like Google (NASDAQ: GOOG) and Amazon.com (NASDAQ: AMZN) have invested in the so-called "cloud." Basically, they are leveraging their huge infrastructures to provision services – like web hosting, storage and so on – to other companies. Actually, I know many startups that have such deals (helping to cut costs and get to market faster).

But what if you don't want to outsource this? Well, there is an alternative: Parascale. The company sells cloud software that you can install on your own servers.

As an indication of its power, Parascale has raised $11.37 million in a Series A round. The investors include Charles River Ventures and Menlo Ventures (both firms have extensive backgrounds in the storage area).

Parascale got its start four years ago. Interestingly enough, it hasn't been an easy journey. The original team had to get second mortgages and lines of credit to support operations.

But now, it looks like the timing is right. "With the explosion of digital content," said Sajai Krishnan, who is the CEO of Parascale CEO, "there is a need for more efficient storage systems."

The Parascale Cloud Storage (PCS) is built on widely followed standards as well as Linux servers. This makes it easier for customers to adapt the technology to their needs (which is not an easy thing to do with Google and Amazon.com).

No doubt, the storage marketplace has gone through several major shifts over the past twenty years. So, with cloud storage, it looks like we may be seeing another shift – and Parascale will now have the resources to become a leader in the space.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates MergerBook.com.

Hewlett-Packard Co. (NYSE: HPQ) certainly has a major footprint in the small business space with such things as PCs, servers and, of course, printers.

But HP is expanding its offerings. For example, last year the company purchased Logoworks and is now putting out some useful eBooks.

One is called the 9 Steps to Outstanding Market Success.

No doubt, it is colorful with many useful checklists, tips, examples and worksheets. Some of the topics include: social media, branding, search engine marketing, online marketing and so on. Ultimately, it's a good way to spark ideas to enhance your business.

Every month HP will release a new chapter (so far, it's on chapter five). The last chapter will be on October 15.

All in all, its helpful information – and not too overwhelming. And you can check it out at the small biz section of HP.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates MergerBook.com.

Google, Inc. (NASDAQ: GOOG) has risen from the ranks of startup to one of the most powerful advertising forces on the planet in about a decade. Although it maintains a corporate mantra of "don't be evil," the company's absolute power over the world of internet advertising borders on on the perception of monopoly just because it has the best product in all the right places. Notice I used the word "perception" there. Is Google a monopoly because it simply has the best product that customers apparently use and love? Of course not.

Similar to how Wal-Mart Stores, Inc. (NYSE: WMT) rose to power, Google got there by providing something the competitors didn't: the best product presented in the best way that was the most useful for the consumer. Wal-Mart opened more stores and offered the lowest prices, and consumers noticed and made it the largest retailer in the world as a result. Google is the largest internet advertiser in the world using the same means in a way, but like Wal-Mart, it has competitors (albeit, with much smaller market shares).

But when a company controls so much of the ad market in the online space, smaller advertisers and businesses that want to break onto the scene and fight with larger competitors that may be slower and tuned out will have to use Google at some point. To grow, one simply cannot do business the way it was done in the past. Just like the small and scrappy manufacturer trying to get into Wal-Mart but can't due to the larger companies offering the same widgets at much lower prices, this effect works inside Google too. Advertisers bid on keywords and if they can remain relevant to the consumer within Google's search results, they can out-spend smaller advertisers day in and day out. Are these market forces some kind of monopolistic behavior? Google doesn't control this -- it is simply giving the most relevant information to the customer. Still, one can see the spot Google could be in very shortly, if it isn't already there.

No doubt, small businesses are a powerful force in the U.S. economy in terms of job creation and innovation. And, according to a recent study from the Kauffman Foundation, it looks like things are still going strong, despite the slowing economy. For example, every month, about 500,000 new businesses are started (of course, there are certainly a good number that fail as well).

So, what are some of the key trends? Well, interestingly enough, there is quite a bit of growth from immigrants. In fact, they are more likely to start businesses than native-born Americans.

Something else: men are twice as likely to start a business then women. Actually, I think this is unfortunate because diversity certainly allows for stronger growth.

However, looking at the next decade or so, I suspect we'll see much more entrepreneurial activity. Why? It's when the Baby Boomers will reach their prime years for new business formation. They will have the wisdom and resources to take a flier. What's more, a new business may actually became an interesting way for Baby Boomers to essentially change the definition of "retirement" -- that is, leaving the rat race and doing what they really want.

Tom Taulli is the author of various books, including The Complete M&A Handbook (www.mergerbook.com) and is also a principal in Averiware, which provides an ERP system to small and mid-size businesses.

Non-farm private employment declined 23,000 in February 2008 on a seasonally-adjusted basis, ADP announced Wednesday in the ADP National Employment Report (pdf).

The February 2008 23,000-job-reduction contained a deceleration in employment growth across businesses of all sizes, ADP (NYSE: ADP) said. The service sector of the economy saw an increase of 47,000 jobs, while employment in the goods-producing sector declined 70,000, its 15th consecutive monthly decline. Manufacturing employment fell 40,000 in February 2008 after declining a revised 3,000 in January 2008.

Most of the decline in employment during February 2008 was accounted for by job losses at large companies, but there was a notable deceleration of employment growth at businesses of all sizes, ADP said. Employment among small-size businesses, defined as those with fewer than 50 workers, advanced just 15,000 during the month, while employment among medium-size businesses with between 50 and 499 workers dropped 4,000. This was the first outright decline at medium-size businesses since June 2003 when job growth was still recovering from the last recession. Employment at large businesses with more than 500 workers declined 34,000.

Conditions in two economic sectors hard hit by the slumping housing sector -- construction and financial activities -- continued to deteriorate in February 2008. Construction employment fell 30,000 -- its 15th consecutive monthly decline -- bringing the total decline in construction jobs since the peak in August 2006 to 236,000. Employment in financial activities declined by 5,000.

Economic Analysis: Although not a large monthly job loss, the broad-based decline suggests near-spectrum-wide weakness in the U.S. economy, with housing's doldrums continuing to take a toll. Further, the fact that small businesses as well as larger companies are reducing payrolls provides further evidence of the comprehensive of the slowdown.

Lately, the headlines have been scary. Unemployment is increasing. There are concerns from the presidential candidates. Real estate values are sagging and foreclosures are skyrocketing. And, premier companies – like Citigroup (NYSE: C) and Merrill Lynch (NYSE: MER) – have raised billions of dollars to deal with heavy losses.

So, if the economy is slowing down, how can your business deal with things?

Let's take a look:

Deal with hidden costs: When looking at expense items, some might seem small. But it's often the case that these items – in aggregate – can turn into a big deal.

According to Tom Sharples, president of Qorvus Systems: "Typical small- or medium-sized businesses that have been around for a few years can find duplicative costs: unused cell-phone contracts that continue to rack up charges, subscriptions to services associated with long-departed employees and often all sorts of legacy junk that no one even remembers ordering, but that you're still paying for every month."

As a business owner, you are certainly an expert. You keep up with industry trends, you understand the benefits of your products and services, and you have creative ideas.

So why not provide some of your wisdom to your customers – through an email newsletter?

Actually, with web services like Vertical Response and Constant Contact, it's fairly easy to set one up. But before getting started, let's take a look at some things that will help your efforts:

Content Is King: Yes, it's a cliché. Then again, it seems that newsletter writers spend lots of time on the design of the email, not the content. Don't fall into this trap. Instead, try to come up with content that your readers can't wait to read. Some ideas:

• Tips
• Recent experiences
• Innovative uses of your product
• Profiles of customer successes
• Industry statistics
• How-to pieces

Oh, and make sure you spell-check your email and have someone provide some editing.

As you gear up your business for 2008, I'm sure you have lots of good ideas. But there is something that is often ignored – getting organized. And with the explosion of email and digital media, being organized is getting even tougher.

To help things out, I had a chance to interview Monica Ricci, the author of Organize Your Office In No Time and the founder of Catalyst Organizing Solutions. She is also Office Depot (NYSE: ODP)'s organizing advisor.

Ricci's core filing system is called F.A.I.T.H, which involves:

File It: If something requires filing, then file it now.

Act: Have an action file for your recurring tasks.

In Progress: This is a file for things that don't fit in a category. Examples: invitation to an event, plane tickets, directions to a client location, or even a birthday card.

Toss: Don't be a pack rack.

Hand Off: Maybe something will be useful for a colleague?

"Everyone should set aside time once a month to sort and slim the files," said Ricci. "Put the date in your planner for one hour on the last Friday of every month."

A piece in the New York Times reports on the main competitive advantage of small stores: They're small. According to the article, "Small retailers around the country are using a host of marketing tactics, from the usual extra emphasis on customer service to putting out free cider and cookies. But their most important step may be that they are trying to make the most of their inherent advantages over larger competitors."

A common criticism of low-cost behemoths like Wal-Mart (NYSE: WMT) is that they knock out mom-and-pop competitors. This complaint certainly isn't without merit, but small stores often can survive Wal-Mart if they can find a way to make themselves more attractive than big boxes -- in spite of their higher prices.

The stores mentioned in the Times piece are doing just that creativity and entrepreneurship. And everyone wins: Wal-Mart forces these stores to provide better customer service. In spite of all the bad press about Wal-Mart's bad service, the reality is that it actually improves customer service at its competitors, who have to find a way to compete other than price.

So if you're one of the anti-Wal Mart brigade who does your holiday shopping at small local businesses, think of it this way: The fine service you enjoy may actually be part of the Wal-Mart effect.

It's easy for me to preach "shop local" from my blogger's perch in Manhattan. While many companies are headquartered here in New York, boutiques, bodegas and mom & pop shops rule this roost. Aside from Starbucks (NASDAQ: SBUX) -- c'mon, they're ubiquitous -- and maybe Rite Aid (NYSE: RAD), I'd have to hike a mile or so to reach the nearest publicly traded business.

But committing my Christmas dollars to local businesses is a tradition I picked up from my ex back in North Carolina, and I think I'm all the better for it -- and all the better served.

For starters, you're far more likely to be wowed with the service from a small shop. At a local business, often you deal directly with the shop owners, who have an undeniable stake in your transaction. Because their equity and livelihood depend upon the repeat business of customers like yourself, you're worth more to the small business owner than the customer queued up at a crowded cash register at Circuit City (NYSE: CC) or Sears (NASDAQ: SHLD), and that value is evident in the transaction.

If you take a look at the stories of great entrepreneurs – such as Wal-Mart (NYSE: WMT)'s Sam Walton, Microsoft (NASDAQ: MSFT)'s Bill Gates, and Howard Schultz of Starbucks (NASDAQ: SBUX) – you will see that they had the help of mentors and advisors.

After all, being an entrepreneur can be lonely, stressful and challenging. And it's often difficult to get solid advice.

"I can't overstate the importance of mentors in my life," said Ben Casnocha. Ben started his first business at 14 years old, and even wrote a book on his experiences, My Start-Up Life: What a (Very) Young CEO Learned on His Journey Through Silicon Valley.

So where do you find mentors? Ben recommends lots of networking. In fact, he considers the Small Business Administration's SCORE (Service Corps of Retired Executives) a great resource (and it's free).

But be wary. Make sure you do lots of background research on the people you like. You might realize that they really aren't a good fit.

Being from L.A., I've had to deal with earthquakes and fire (no, it's not always sunshine here). And, of course, I saw the devastation of the recent fires.

But what about some of the businesses that need to rebuild? Could they have prepared for the fires?

Well, I recently interviewed Jon Toigo, a disaster recovery expert at Toigo Partners International. Over the past 20 years, he has put together nearly 100 disaster recovery plans. His clients include Microsoft (NASDAQ: MSFT), Cisco Systems (NASDAQ: CSCO), and Hewlett-Packard (NYSE: HPQ). Also, Toigo has a partnership with Office Depot to help businesses deal with disaster preparedness.

"The bottom line in disaster preparedness is to protect your most irreplaceable assets – your people and your data," said Toigo.