What you can do to help your small business survive economic recession

Most people are feeling the pinch of a bad economy, and small businesses are no exception. With both consumers and businesses looking to save money, it can be difficult for a small business to stay afloat during difficult economic times.

However, there are many things you can do to help your small business survive economic recession. A few tips include:

Cut costs where you can.
When business is slow, it's important to separate your essentials from those things that you spend money on for convenience or luxury. Sit down and go through your expenses carefully, and cut what you don't need or what you can do without. Do you routinely provide food for your employees or take them out to eat? Do you spend a lot of money on printing services for convenience when you could be printing materials at the office? You should also take a look at the little costs that add up, for example, do you leave lights on at night when you leave? Are you paying for an answering service? When you can cut costs, your business will have a better chance of survival during an economic recession.

Evaluate your marketing.
Don't waste money and time on marketing that isn't bringing you sales. For example, if you are spending money on a big ad in the Yellow Pages and have only gotten a sale or two from it, consider getting rid of it. If you have gotten very few responses from direct mailing, don't do it again. Marketing is often a huge chunk of your company's budget, so make sure your money is going to good use on marketing tactics that actually work.

You should also try low cost marketing and promotion that will help drum up more business. This could be offering discounts or coupons (even a small amount is enough for many people to use your business), having an "open house" with food or balloons for kids, or writing press releases to local newspapers or business magazines.

Reevaluate your hiring practices.
Consider hiring temporary workers to help you with the day to day operations of your company instead of spending the money on a salary and benefits. There are many temp agencies that can provide pre-screened applicants for clerical work, reception, and even professional services like accounting or human resources. These employees work for you on a temporary basis, and you pay the temp agency, who in turn deals with the employees. Temporary agencies bill by the hour, but most are willing to negotiate with your on price.

Take care of your current customers.
While it's always a good idea to market your services to new prospects, it's also smart to take care of your current customers-remember the saying, "80% of business comes from your top 20% of customers." Spend time making your top customers happy, and consider offering incentives for recommending your services to others. Satisfied customers keep coming back, and they are more likely to recommend your business if you work hard to keep them happy.

The current state of the economy has taken a toll on many businesses. Because it may not be the best time to be making loads of money, spend your time focusing on ensuring that your business will survive the economic recession with these helpful tips.

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