that they may be hit hard this year by a fall in income due to the decrease in the number of tourists.

This is the advice given by the Bermuda Small Business Development Corporation who, in partnership with other organisations, is running a seminar tomorrow for owners of businesses.

"You should act now, and seek advice before it becomes a problem. Speak to a financial advisor, an impartial friend or the bank, but do it before you add up the figures at the end of the year and find there is a cash flow problem,'' said Neville Grant, business development officer of the Bermuda Small Business Development Corporation.

The free breakfast seminar, run as part of Business Track, will focus on `Challenges Facing Owner Managed Businesses' and will be held between 8 a.m.

and 11 a.m. at Elbow Beach Hotel.

Many small businesses are facing a tough year because of the drop in the number of tourists and sales across the Island have been hit.

Mr. Grant said: "There are many issues facing businesses, especially their cash flow being impacted as tourism is not at its peak. There has to be planning and this could even lead to the problem being lessened by the end of the year. But the time to tackle problems is before they become a problem.'' He added: "We haven't actually seen the effects of it yet. And it won't be until next year that we will see what impact the fewer tourists will have on the 2001 season until January, February or March 2002. But we are looking to make people more pro-active and get these issues dealt with now and then if the fall-off does impact 2001, then you are prepared.'' The focus of the seminar will be on cash flow management, financing and budgeting for small businesses as well as when to use inside and outside advisors.

Mr. Grant added: "Sometimes owner/managers have an emotional attachment to their business and cannot see the wood for the trees. It can really help to have another person to talk to.'' Other topics to be covered will include staff management, succession planning and business planning.

"Small businesses have a problem with long-term planning sometimes, as they are so overwhelmed with day-to-day problems they have to take care of,'' said Mr. Grant.

"When you have your own business you have to put on many hats, accountant, office manager, staff manager, book-keeper. And if your skill is in plumbing -- the reason you went out on your own, it can be difficult to become a human resources manager.'' David Reid, senior manager of the corporate finance group at Ernst & Young, one of the companies sponsoring the Business Track event, said events like the one tomorrow were useful for small businesses.

Small business seminar Mr. Reid said: "If you are the owner of a small business which has a connection with your family, say, somebody outside of the family may have a different point of view and that can help.

"They are not biased or emotionally connected. Maybe a sector has been part of the business for 20 years, but it may be time to take it away and add something new. You are fighting fires every day and it is hard to take time to get the long-term view.

"That is why seminars like this are good -- you have the expertise there on hand and free.'' He added that at events such as Business Track, not only could owner/managers of smaller businesses learn from experts on hand, but also from other owner/managers who may have faced similar problems and found an effective way to tackle them.

To register, e-mail cstines ybdagov.bm or fax 295-1600.