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Question: I am a small business owner. With the economy being in a severe recession, I am concerned. How do I keep my doors open and my employees employed?
 
Answer from: Charles Hude, Art of Cultivation 

I think by now most business owners understand we are in a recession. Yet, some businesses are going strong while others are losing customers. The question you should ask yourself is “Why I am losing customers?”
The two most important areas of your business that you can fix are your customer service and your employees. Ask people if they think you give great service, and if not, come up with ways to make it better.
Do not do it alone. Sit down with your employees to explain to them what’s going on. Let them give you suggestions on how you can improve your service. If your employees feel that what they say will make a difference, you are on your way to more motivated employees and better service.
 

Learn How to Run a Small Business in a Recession
 

Running a business with or without a recession, can be quite a challenge. When people are cutting back, it makes your job as a business owner much harder. Typically, businesses that do not owe money have a better chance of surviving recessions. Even if your business does carry some debt there are things you can do to stay afloat.
 
Keeping Your Employees
 
It’s admirable that you want to keep all of your employees, but that may not be realistic. You may need to make some tough decisions. Here are some possible options for saving money:
  • Cutting hours. Many companies are cutting everyone’s hours back by 5-10 hours.
  • Cutting a few employees. You might consider letting go of the last hired, people with complicated availability, or part-timers.
  • Talk with your employees. Maybe you can give everyone a temporary pay cut until things improve.
  • Cut your hours of operation. Consider closing shop on Sundays or changing the daily hours. This can save a lot of money!
Marketing
 
Now is a good time to advertise. Many business are closing, publications are struggling to keep advertising going. You may be able to score a good deal on an ad in a newspaper, a radio spot, or even a television commercial.
 
Here are some ideas for other places or ways you might advertise:
  • Churches, schools, or community centers. You could advertise in bulletins that are passed out or on community boards.
  • On the Internet. For example, try Craigslist (which is free) or buy ad space on a popular website.
  • Pass out fliers.
  • Make incentives. Although times are tough, people aren’t passing up good deals, such as:
Make sure that you have enough stock or employees to meet the potential clientele demands.
 
The Competition
  • Learn what other business comparable to yours are doing in your area. Look at how they are cutting prices, maintaining employees, or changing hours.
  • Set yourself apart. Are there little things that you can improve to make your business better than the next? For example, try:
    • Offering refreshments at the door or in the waiting area, such as water, tea or coffee.
    • Improve your customer service. While people are cutting back, money is still being spent. Having the best customer service will keep people coming back to you and recommending your place of business. Word of mouth is often the best advertising.
In addition to the small things you can do as an owner, talking to a small business consultant might be worth your time. Many offer consultations for free or a small fee for a first visit. In addition, there are organizations and nonprofits that specialize in small businesses that may be able to help you for free.
 
Visit these sites for more information on business consulting:

 

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