Small,Business,Recession,Survi business, insurance Small Business Recession Survival Tips
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Have you read the papers lately? There's a recession! Shocking! Ofcourse, most small businesses wouldn't have known that without ourbrilliant media telling us as much - ha! In fact, they were able toeven tell us when it started - December 2007. Well, now that we finallyknow what most of us have felt for the past year or so, what do we doabout it? We hunker down and position ourselves stronger than ever.Thereare a couple of areas that you need to be very smart about when youconsider what to cut. Be very careful about your marketing budget andyour customer service.Marketing is a critical lifeblood to yourbusiness but it seems that every time the economy goes south, smallbusiness owners start looking at advertising and marketing as avariable expense that should be slashed. Think very carefully aboutthat. It might sound simple but if you zig while your competitors zag,you will be in better position not only during the recession (highervisibility) but after the recession (customer loyalty).Thatbrings us to the other very important area of consideration for yoursmall business during a recession - customer service. Layoffs might bethe first instinct for many small businesses but be very careful not toimpact your most valuable asset - your loyal customers, who may beadversely affected by layoffs that impact customer service. See above -if we're eating in to our competitors market share during a recession,we need to have exceptional customer service so those new customersstay with us.Of course, a recession may be the best time tore-evaluate your Web efforts and strategies. Are there opportunitiesfor you to expand your business through the Web? Can you create acustomer loyalty program online and leverage that email file that youhaven't done anything with yet? Get creative. When times are great, wetend to get complacent. When things get tough, we need to get creative.So,you might be asking "where do I cut?". The difficult reality is thatyou may need to accept lower profit margins during a recession whileyour top line suffers. Be patient. Weather the storm. Harken back tothe early days of 'beans and rice' when you first started yourbusiness. Hopefully, you won't have to get that dire but accept thefact that you, as the owner, may make a little less this year. Considerit a reinvestment in your business. Don't be stubborn and think thatyou 'deserve' to make as much as you did last year and therefore youmust cut expenses in order to maintain your profit or draw. That isirresponsible and short-sighted.What if you have shareholders toanswer to? Be upfront and vigorously defend your decision to defendmarketing, advertising, and customer service budgets. They may sufferas well with smaller profits this year as well - you'll have to sellthem on reinvestment now in the form of lesser profits rather than riskthe long-term health of the business by being greedy today. You have toreassure them that things will improve. After all, a recession iscyclical so they will soon get a return on their investment.Ifyou do have to cut staff, take a close look at activities that you maybe able to outsource - or maybe insource to your family. Administrativeand bookkeeping tasks might be easier to outsource or have a familymember chip in on in the short-term while you tighten the belt. Notideal, but it's also not a bad idea to periodically bring familymembers closer to the business to learn the ropes a bit in case yousuffer a short-term disability where they may be called into duty.Toughtimes can be lonely for small business owners. This may be your firstexperience in the weak portion of the business cycle. As a businessowner, no one is going to tell you what to do and you are expected tobe the one to set the direction. If you have doubts as to what you cando to survive a recession, don't be afraid to ask other owners whatsteps they have taken. Sharing this information is beneficial toeveryone because no one wants to throw in the towel. Think opportunityinstead of challenge. Article Tags: Small Business, Customer Service
Small,Business,Recession,Survi