Small Business Management Through the Recession

Today's uncertain economy is enough to make abrighter than before. If you do not let your
small business owner's hair fall out, bowl over from acustomers know you are still on board, they may
stomach ulcer or scratch up a rash that could causeforget about you when the good times resurface.
customers to consider another place for service orAnd they will resurface.
product. The good news is that we know theDevelop a no cost marketing plan that includes
economy will turn around, in time. Your job is to workbuilding media relationships so you can submit byline
smarter and keep your business moving forward untilarticles relevant to your industry. Appear on local
then. That means taking a hard look at the businessaccess television as an expert in your field. Join in
of your business.professional, community and industry networking
As small business owners we are good at what weevents. Develop a customer management program
do and make. Problems arise when we pay too muchthat includes regular contact with customers about
attention to our product or service and not enoughsubject unrelated to your business as well.
to managing the business itself. Granted that is theApply for small business awards and contests by
part that usually evokes a dreaded "ugh," but it iscorporations, professional associations, and
also the part that can mean the difference betweengovernment. This recognition will get you attention by
success and failure. Focusing on your financials, theyour customers as well as potential customers that
people who make your business possible, and yourmay not know you exist. Winning an award often
vision will help ensure your survival in today'sgets you requests from other media who want to
economy and beyond.publish your story. It also builds your credibility.
Re-Mind Your BusinessNurture Your People
Cash in or Cash Out I am sure you have heard this aEmployees It may be that without your employees
thousand times, but it still needs saying. "Cash is king."you would not have a business. During this economic
A business is more likely to survive in a good or badslowdown, communicate with your employees. Now
economy with good cash flow than with profits. Onemore than ever it is important to be transparent, ask
does not necessarily mean the other. Small businessfor their ideas for improvement. Motivating
owners usually have problems with cash flow noemployees is difficult when they are feeling shaky
matter the economy. To improve cash flow do aabout whether they will keep their jobs. The best
cost analysis of your business. Look at areas wheremotivator is to provide them the opportunity to
you can save money such as bank and credit cardoffer suggestion on how to serve the best interest
charges; negotiate with creditors for longer paymentof everyone in the company over the long-haul. They
arrangements. Barter for services or products withmay be willing to take a pay cut or have ideas about
suppliers. If you offer credit to your customers, cut itcutting back on expenses you did not think about. Go
down or out and be more aggressive with collections.the extra step and provide praise for good work or
Consider outsourcing services instead of hiringideas that work. They are your most precious
another employee. There are many freelancers thatresource. It is usually less costly to keep current
are experts in specific areas such as accounting andemployees than searching for qualified employees
bookkeeping, website design and operations andthat you have to train when the economy improves.
marketing and public relations that can cost less thanCustomers Keeping your existing customers by
an employee, benefits included. Be creative inproviding excellent customer service is good practice
reducing the cost of your day-to-day operationsanytime. During today's economy it is critical. It is
without sacrificing the quality of your product ormuch easier to keep existing customers than to find
service.new ones. Talk to your customers. Learn what they
If you do large jobs, ask for a payment plan thatneed, how they are doing financially, what their
includes a deposit. If you do large contracts such asexpectations are for the future, so you are on your
janitorial services for major corporations, invoice earlygame when the economy improves and your
and ask for early payment or offer your customerscustomers start spending more.
a discount if they pay the invoice within a certainSuppliers Supplier loyalty can be valuable when you
time frame. In a poor economy, large corporationsneed extra time to catch up on your account
are looking for ways to save money too.payables. Depending on your business, you may land
If you need help with your cost analysis or cash flowa new account and need supplies to launch the
projections, ask for it. Worcester has many free andaccount until your first month of receivables is due
low-cost resources to help you develop your survivalwhich could be 60 to 90 days out. A good
tactics.relationship with your supplier could mean your
Marketingpayables receive the same time consideration. Think
While cutting costs is most important, cutting backcreatively when making deals to grow your business
on marketing, advertising and public relations during awith the help of your suppliers. The more growth
poor economy is a big mistake. Marketing and publicyour business experiences, the more business your
relations are what gain you new business. Whensupplier could expect.
times are hardest is the time you want to shine even