If you’ve been lucky, since 2008 your business has been relatively unscathed by the financial turmoil and resulting uncertainty. It’s likely that most small businesses will be affectied negatively as we move ahead into 2012 and a recessionary economy with continued uncertainty. Depending on who and what you read, this recession could last 12 – 24 months or more. So what are you, an average business owner, to do in an environment like this?
We think a couple of things. First, don’t increase expenses and if possible cut them. Look everywhere for cost savings – now is the time to review some of the things you always thought you’d get around to in terms of ways to reduce costs.
Second, if you don’t grow, don’t sweat it. In an economy like this, steady state is golden. Do what you can, with what you currently have, to maintain revenue, market share, and customer base. We also highly recommend that you do not borrow to grow. There’s enough risk right now with the uncertainty in the overall economy. Don’t burden yourself with additional debt.
Last, always remember that you’re nimble and competitive especially if your competition is larger than you. Your customers buy from you for some very good reasons (besides just cost) and remind them of those reasons early and often.