The stock market has declined by almost 18% so far in 2008. Companies that are cornerstones to our economy are folding or being bailed out by the government. In Texas, gas prices are up 42% since this time last year. As a small business owner, how do you navigate this treacherous terrain?
Close up shop – find safe harbor in a large corporate environment?
No way – there’s no such thing anymore!
Take a vacation – hide out until things turn around?
Don’t kid yourself – your financial problems won’t fix themselves, they’ll be waiting there for you when you come out of hiding!
Lead the charge to success and economic turnaround?
Yes! Keep doing the things you know are fundamental to your success and use this as an opportunity to step up and stay in the forefront of your market.
When the economy is in a slump, we as business owners have to be vigilant in how we spend our $$, controlling cost is the only way we’ll survive. So where do you cut costs without impacting your ability to succeed in a down economy? Here are some of my thoughts:
- How much are you spending on office supplies every month? Can you do without the stack of brand new file folders and just turn used ones inside out?
- Are you furnishing a new office, need a new copier, fax machine, or other equipment? Check out Craig’s List for used furniture or equipment.
- Have you checked the local real estate market to make sure you are paying a reasonable market value for your office space? Rates have been dropping; don’t lose out on an opportunity to cut one of your largest expenses.
Cutting out the excess is an important step, but equally important is continuing to invest in the areas that are critical to your growth, like:
- Don’t be afraid to hire new staff – downsizing in corporate America can lead to opportunities for small business owners to add some of the best talent in the market at a rate you can afford.
- Strengthen your message in the marketplace – make sure you are keeping your message in front of your customers and prospects so they are confident you will be around for the long haul to service them now and into the future.
I speak from experience on this topic; CMC opened its doors in September of 2002, during a down cycle of the economy. We started this business with our eyes wide open to that challenge, but we met the challenge head on, certain that the clients that would be attracted to our strategic outlook on their long term marketing goals, were the types of business owners that are here to stay. That business model has proven itself, and we are thrilled to see the success of our clients that started with us then and continue to thrive today.
Small business is the backbone of this country’s economy and small business owners bring the innovation and energy required to advance opportunities in the business world. We’ll meet today’s challenges so that we can reap the rewards of tomorrow’s future!
Author: Dee Parker
Sr. Consultant & Partner
Read more of Dee’s blogs.
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