The Small Business Survivor: Four Things You Can Do Now to Weather the Economic Downturn

It’s no secret that these are tough economic times – especially for small businesses. However, guess what? People are still buying. The question is, are you selling what people are buying?

Take Apple Inc. for instance. While most manufacturers and retailers struggled through the past holiday shopping season, Apple managed to shatter analysts estimates for profit and sales last quarter in spite of the U.S. having its worst shopping season in 40 years.

What was the key to Apple’s success? Apple had what the market demanded: updated Macintosh notebook computers and revised and reduced iPod designs and prices. While stock in Apple declined (like most companies) last year by 57%, its stock price shot up 8% on the announcement of its most recent milestone.

So, you are not an Apple. That doesn’t mean you two can’t have business success in these tough economic times. Here’s how:

1) Establish, tweak and build your brand online. With the advance in technology, there is no reason anyone with the right idea that can meet a market need and demand cannot be successful – even in these economic times. The best and most cost effective way is to do this via the Internet. Build and/or reconfigure your web site. Make regular updates and changes as often as possible no matter how basic your site. Develop a blog and establish yourself as an expert in your area of focus and service. Utilize and maximize social networking tools designed to drive traffic to your site. Build your contact list and engage in a regularly scheduled e-mail marketing campaign.

2) Maintain a commitment to high quality standards. It’s been said that these times will result in a “natural and healthy thinning of the heard" where only the strongest businesses will survive. To remain fresh and relevant, quality customer service must be a priority. Ensure you have and are creative in managing essential capacity so that your customers don’t feel the pinch just because you do – even if it means moving your business back into your home.

3) Negotiate and re-negotiate. Everyone is feeling the pinch. Therefore, finding ways to cut-back on your greatest expenses can be a big help. Among the two greatest expenses of any business are payroll and lease/mortgage payments. Daily we hear about the sky rocketing unemployment, so clearly businesses are letting go of staff to save money. However, how many are going to their landlord or mortgage holder and seeking to re-negotiate the terms of their lease or mortgage contract? Don’t be afraid to ask for such a consideration. An occupied building with some money is far better than an unoccupied building with no money any day.

4) Team up with other small businesses to create a network. Convene a meeting with your web developer/IT person, marketing person, and accountant. See about forming a virtual corporation that enables you to share resources, make referrals and engage in strategic networking. No man (or woman) is an island. While as a stand alone business, neither of you may have the capacity of an Apple, yet, with a little creative thinking and the formation of strategic partnerships with other small business people whom you trust, who have a demonstrated track record and are as motivated as you are to stay and thrive in business, you might just create a winning combination.