Recession Proofing Your Business

The one thing that I’ve learned by taking the time to get to know several of my area's local business owners is that no business can escape the condition of the economy. While some businesses are doing better, and some are tumbling down to rubble, it’s important to know the how and the why, learn from their failures (or successes) and improve your own small businesses for a brighter future.

So what can you do? Let’s talk about Recession Proofing your Business. This is the perfect time to do your research and make it work!

Want some ideas? Here they are:

1. Customer Service!!! In today’s economy there is no middle ground. Treat those customers well! If you have a hard time with sale-savvy happy go go representation, perhaps it’s time to give your business a facelift and hire a front man. 

2. It’s time to inventory. See what you have and what you don’t have, but don’t buy anything just yet.

3. See what the top sellers are and the average unit price for those products/items. This will give you a price range you will want to have as a buyer average to keep as push able inventory.

4. Stop buying junk or trinkets that won’t sell. These are a waste of inventory and money. I like to call it junk trimming, sometimes less is more. If you are in need of something to house your current inventory look for auctions or other local businesses that are closing to keep the cost cheap.

5. Research what you can bring in around the same price to attract more and frequent visitors/buyers without stripping too much away to endanger your business.

6. Take another look at your inventory, whatever isn’t selling house a special or a special sale to push these items out the door. If the sale doesn’t do well in six weeks, look at selling your stock online through other resellers or on eBay.

7. Are you in a position to set up an online shop? This is a great way to increase your business profits and get outside recognition for your business.

8. It’s time for more research, talk to other local business owners. Work on cross advertising for those businesses that would be compatible with yours. Ask advice. See what’s working for them and what’s not. Working together as a community you will increase your success. A support network is essential.

9. Become apart of the community. Look for ways that your business can benefit in the community or become involved in the community via a charity or a fundraiser of some kind. This will not only get your business noticed, but you will become apart of the community rather than standing on the outside looking in.

10. Try Groupon or Living Social and give those deal seekers one heck of a deal. Per word-of-mouth from my local business owner friends, this is a great way to attract attention.

11. Get technical! If you’re not technical and Internet savvy, it’s time to take a class. Look to your local public library that has several free classes to help you. Or you can always rent/buy a book and learn that way, but what’s important is that you’re connecting yourself and your business on a new level. This is the future of “free” self-advertising.

• Make a Facebook page
• Set up a Twitter account
• Make special deals and post regularly on both
• Set up a website
• Set up a point system with rewards
• Set up an email list

12. Look at your marketing budget. What can you do? There are several options out there to do at a low or no-cost (see above and below). What is the key here is do your research, talk to other local business owners and take the time to learn how you can make it work.

For Redmond (and surrounding Seattle area) locals:    http://www.thinkredmond.com/  
http://biznik.com/events/get-clients-now-a-28-day-marketing-program-series-5

Get creative! How can you revamp your business? Whether it’s the look or addition of new items or an updated menu. Look at your local community and fill the void. See what’s missing, and provide it!

13. Above all, stay POSITIVE!

Most small businesses right now have exceeded their line of credit. What can you do to help you in these hard economic times?

A financial that is better than a loan:

Have you heard of merchant cash advances? If your business has a regular cash flow from credit card transactions, you can speak with your merchant company to see if you qualify for a merchant cash advance.  Most merchants will approve these cash advances up to three times your monthly credit card volume.

Taken from one of my previous articles, :

Know your other options: 

• Check out the ARC Loan Program Interest Free Loan for Debt Repayment (The American Recovery Capital (ARC) Loan Program) provides interest-free loans of up to $35,000 to small businesses to aid in making principal and interest payments on existing small business loans (including credit card loans) for up to six months. This loan is 100 percent guaranteed by the SBA. There is no collateral and no fees associated with this loan. Payments are deferred for 12 months and repayment can extend up to five years. 
• http://archive.sba.gov/recovery/agencyplans/index.html
• http://app1.sba.gov/training/sbafp/ (free training program)
• There are more options available; contact the SBA directly to find out more information.

Even more resources:

• http://usgovinfo.about.com/od/moneymatters/a/sbahub.htm
• http://directory.ac/businessgov.html
• http://blogs.findlaw.com/free_enterprise/2010/05/tax-credit-to-pay-third-of-small-business-health-cost.html
• http://www.sba.gov/category/navigation-structure/loans-grants/small-business-loans/sba-loan-programs