Good Advice for a Bad Economy

According to recent findings by the National Federation of Independent Business (NFIB), small business owners are far less likely than in earlier years to: borrow money; invest in expansions, equipment, or new facilities; or hire additional employees. Entrepreneurs seem to be waiting for the economy to change directions before taking advantage of any current growth opportunities.

That being said, there are some things a small business owner can do to improve the bottom line without risking more losses in these troubled times.

• Accentuate the positive. In every economic down cycle, there are people who come out the other side positioned better than they were when it started. The more positive and upbeat the office attitude, the more likely company goals can be met. Or put another way, there is no upside to a defeatist attitude. People act on their expectations. (You wouldn't bring an umbrella to work if you didn't expect it to rain.) Encourage your people to expect business to be good and they will act accordingly. As your customers see this, they also will act accordingly.
  
  
• Focus on the basics. Now is not the time to add lots of bells and whistles to pick up a bigger piece of the market share. Concentrate on doing what you do well, and do it even better. This is probably what brought your customer base to your business in the first place. Ask yourself: "Why do the customers I have now come to my place of business rather than to my competitors? What am I doing that they are not? Or, what am I doing better than they are?"
  
  This is your competitive advantage. Work on this. Work on basic marketing. Work on basic customer service. The time you spend during the slow periods on polishing your basic skills will not be wasted. These same skills will serve you well during the fat times too. Moreover, by working on the basics of keeping your current customers happy, you just might pick-up some new customers from your competitors who have panicked and strayed from the basics.
  
  
• Do what you can do. Borrowing a principle from The Seven Habits of Highly Effective People. Don't waste time and energy worrying about the price of crude, or the housing surplus, or what the stock market closed at today.
  
  Consider this question from Jesus: "Which of you by taking thought can add one cubit to his stature?" Most people spend much of their time trying to control or influence things over which they have no control or influence. Put on your work hat, pick up a pen or a hammer, and direct your mental and physical efforts toward the things you can do something about.
  
  
• Polish your skills. There is a good reason why college and university enrollments are up during economic slow-downs. In 1996, when unemployment was between three percent and four percent and McDonald's was paying $8 per hour for people to flip hamburgers, there was too much easy money to be made to go to school. The streams were teaming! It was time to fish.
  
  Well, now is the time to cut bait. Consider updating your knowledge and abilities. Take this time to contact the folks at your local Missouri Small Business and Technology Development Center and ask them if they have a class or two that can help you fill in some of your business-skill gaps. If not for you, then maybe for someone on your staff.

Finally, consider the current economic situation as an opportunity. That may sound like a cliché, but it's true. The companies that take advantage of this situation will be stronger and better positioned when the economy recovers.

- Tom Kelso, MU Extension Business Development Specialist, Holt County SBTDC