In today's highly competitive marketplace, many workers are glad to be gainfully employed and may be willing to work extra hours just to keep their jobs. But numerous studies have shown that pushing employees too hard — requiring them to work overtime hours for months on end, for example — can lead to significant risks for both the employee and the company. The problems can be the same even if an employee volunteers for overtime.

If your company needs office equipment — computers, copiers, or telephone systems, for example — you as the owner may question whether it's smarter to lease or to buy. It's not always an easy choice. Each firm faces a unique set of market conditions, financing options, tax considerations, and other factors. Yet there are certain pros and cons that a prudent business owner should consider.

Providing quality goods and services requires a significant investment of time, cash, and expertise, and without an effective credit and collection policy, a reasonable return on that investment may prove elusive. By extending credit to customers who don't pay, companies all too often provide products and services for free. Yet if businesses tighten credit requirements too much, good customers may take their business elsewhere. Although owners and managers may be reluctant to pump scarce resources into collecting bad debts, if receivables aren't adequately controlled, a company may find itself without the cash needed to cover ongoing expenses.

Studies show that only 30% of family businesses survive the transition from the founder's generation to the next generation. Of the companies that weather such transitions, less than half successfully transfer the business to a third generation. Such statistics demonstrate the importance of succession planning, a task that can be especially difficult for small businesses. Ownership and management of such firms are often vested in the same person or small family group, so identifying and grooming those who will lead the company forward is critical and fraught with risk.

Walk through most commercial warehouses and you'll find products that have been collecting dust for months, even years. Tires that no one wants to buy, raw materials that are no longer used, tubes of caulking that are good for nothing but the dumpster, textbooks that college professors revised two years ago — all may be considered obsolete inventory.

Before a start-up company can begin producing revenue, it often needs an infusion of cash that exceeds owner contributions. Even long-established firms sometimes must borrow to purchase inventory, buy real estate, expand operations, meet payroll, or keep the lights on. When business owners turn to banks and other financial institutions for help, some are offered loans; others walk away empty handed.