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    0 Replies Latest reply on Aug 4, 2009 2:35 PM by Nikita

    How to recession proof your small business

    Nikita Newbie
      Small businesses are crucial to our economy.

      Small and Medium businesses (SMBs) are an important source of job growth. Small businesses account for a large majority of jobs in start-ups, a key source of innovation and economic growth.

      Here are some tips for you on how to prepare for the worst-stay lean, talk to your customers, and don't stop hiring and marketing, get listed in the small business directory so you can be found.

      To keep your company lean, you should set and measure inventory targets and keep in daily or weekly communication with your sales and operations staffs. You may also want to weed out unprofitable customers (, Oct./Nov., 2007). Every company has customers that cost more than they add to the bottom line. Identify them, evaluate how to make them profitable customers, and if that's not possible, politely hand them to your competition.

      To keep from losing business, keep in close touch with your customers by connecting with them on the small business network. Show that you care. Understand how their business is being affected and look for ways you can help. Lasting relationships are built in hard times. And look for new market opportunities, recognizing that when the business climate changes, customer needs will change as well. That may mean new markets will open up for you.

      Develop strategies to land more customers. I counsel my clients that if they want to make their companies grow they will have to steal customers from their competitors, period. The pie is shrinking. For the auto repair shops, cars are more reliable and need less frequent service. In the restaurant world there's been overbuilding and the average number of meals eaten out has declined for the first time in a number of years. The successful small business is going to have to win a bigger share of that shrinking pie. The way to do that, particularly for small businesses, is to get listed on the small business directory and use effective lead generation and marketing solutions to connect with new customers, partners and suppliers and create a positive experience. Make sure you give every customer the best experience you can. That means clean restrooms, courteous staff, eye contact, handshakes. You've got to do this better than the other people out there. Another good option for local businesses is community involvement. Join a small business community or the Chamber of Commerce. Sponsor a Little League team. Let the Girl Scouts do a car wash in your parking lot. This is part of bonding with your community and becoming an established part of it.