Nobody can say in what direction the economic crisis will take us during the coming months and years, but I think it’s most likely we’re going to be living with it for longer than any of us would wish.

Being a small business owner, you are more directly connected to your staff and your customers than larger business entities, and this is a good thing, and a good thing to keep in mind.  Let me give you some general ideas on how to approach your business during unstable times.

1) Think outside the box. When your business declines and the future looks uncertain, your first instinct might be caution. But try to understand, if you do it in a sensible way, risk-taking isn’t necessarily irresponsible during a recession.

You can still make adaptations to your company, even substantial alterations of your business plan, without breaking the bank.

Try out new ideas; be creative and brainstorm!. Maybe try using some of the social websites like YouTube, Facebook, or MySpace to reach out to your local community online. You can focus on developing your local search marketing on the internet search engines or do some joint venture projects with other local merchants in your area. Necessity is the mother of invention! Coming up with innovative ideas to help guide your company through rough times and poor performing periods is not merely a proactive way to produce tangible cost-saving benefits. It can also keep your spirits up.

Of course, you might make mistakes. Realistically assessing what you can and cannot afford to risk is part and parcel of running a business.

2) Project confidence and steadiness. In a recession, people rightly get nervous. It’s not surprising that they would be drawn to someone who is assured and optimistic, someone who focuses on finding solutions instead of worrying and brooding.

Your staff and customers as well will respond to this. You might need to make some hard decisions, such as cutting staff, or changing your business operations in a manner your employees will find disruptive.

If they see you as a leader and a person of trust, it will decrease their fears and help maintain morale.

3) Keep your employees motivated, and make them part of the solution. It is absolutely critical to not let morale fall, and nurture a sense of productivity.

Declining business is troubling for all members of a business, not just the owner. But these uneasy times don’t have to be times of stagnation and gloom. Morale can suffer, especially if there have been layoffs. Work hard to make your employees feel they are contributing to a common goal by soliciting their opinions and holding staff meetings to keep them in the loop.

I talked about brainstorming in an earlier point. Your employees can and should contribute to that process. People who know they have a direct stake in the business are a great source of ideas.

4) Keep your customers in the loop. Keeping communication with your established customer base is of paramount importance when economic instability is afoot. Never forget that they are feeling the pinch just like you are, and will appreciate that you acknowledge their insecurity. Use your list of contacts to maintain open lines of communication with your customers, sending emails or snail-mail updates on any changes you might be making.

Use real time communications like Twitter to stay in touch with your customers (see Twitter for Business for more on Twitter). Regularly update your website with postings about ways you’re dealing with the economy and addressing customers’ needs. Don’t act like it’s business as usual if it isn’t.

If you respect the intelligence of your customers and are honest with them you will keep their trust. Don’t get me wrong: your customers need to know that despite hard times, your company is still strong and functional, and will remain attentive to their concerns.

5) Come up with ways to keep your customers’ business.

No matter how well your company is doing, customers respond very positively to rewards and deals for their continued patronage. It is important that you have some sort of loyalty program that can track and reward your loyal customers. And when they are pinching pennies, special offers to your most valued customers will mean even more, providing you with a competitive edge and encouraging loyalty.

So, to sum it up: if you keep positive, project leadership, team up with your employees to maintain innovative ideas and morale, and interact with your customers to reward loyalty and respond to their needs and priorities, you stand a better chance of not only handling the economic crisis, but thriving in it.

Filed under: Start Here

Like this post? Subscribe to my RSS feed and get loads more!