Helping Your Small Business Survive the Economic Slowdown

Helping your small business to survive the economic slowdown is a matter of taking inventory, cutting fat, and partnering up with other small businesses that can help you drive traffic. Did you notice that I called our current economic state "slow" and not "in crisis"? If you are a small business owner wanting to weather this economic storm the first thing you must do is switch your mindset. Look at your businesses with a new set of glasses to come up with creative, innovative ways to succeed while others are failing.

Look at your business as a whole. Start with the largest steps in the process and work down to the smallest, most basic of daily operations. Write them down. You want to visualize exactly what is happening at your business. From ordering and receiving supplies to changing the paper in your point-of-sale terminal. Make a flow diagram if this helps you to see how operations flow on a daily basis. Include who is involved in these processes, and their job title.

If you have inventory, such as in a retail store, account for every single product in your store or warehouse. Know exactly how many pieces you have of each product, the cost of the product, and the amount of profit received once the item is sold.

Once you have a good solid idea of your businesses processes and the inventory involved, you are now better equipped to cut out the fat, or in other words, the unnecessary costs that are being paid out. Business owners are usually so engrossed with the "day to day" operations, that they may overlook the most obvious cost cutters. Having a flow diagram and inventory sheet can really open one's eyes to wasteful spending. Have a spouse or close friend take a look at operations to give an "outside" opinion on areas to save money.

Partnering up with other businesses is imperative in a slow economy. Just as neighbors or relatives come together in a time of crisis, so must your business. Find a small business that caters to the same type of client as your business does. For instance, if you have a catering business you would benefit from partnering with a party planner or wedding coordinator. If you are a restaurant you might benefit from partnering up with the local schools and sport associations. The "I will help you with your interests if you help me with mine" mentality can prove to be very profitable in times of economic slowdown. With less money to spend on advertising, partnerships can bring in new business with a low cost of acquisition.

The economic slowdown may have many people fearing and preparing for the worst. Innovative and optimistic individuals are looking for ways to improve and make their businesses more efficient. Creative and lucrative small business owners are also looking for partners to solidify their stake in the marketplace.