Talk of recession – or worse – scares business owners. Small business owners know there’s nothing worse than feeling as if you have no control over your future. A down economy doesn’t have to dictate doom, though. Some small businesspeople say recessionary fears only make their operations tighter, an upshot in any economy.

If you’re feeling a crunch, try these survival tips:

1. Control cash. Cash flow is key, and often business owners spend money on things that might not be necessary. Tighten the budget, trim the fat and rein in credit. Using credit lines like cash means you are spending money to spend money.

2. Develop new marketing strategies. When cutting expenses, it’s easy to look at marketing as an easy target. But eliminating all marketing cuts your chance of adding new business and losing touch with existing customers. Find fresh ways to reach your audience with cost-effective activities, like highly targeted direct mail vs. blanket mail or e-newsletters with coupons vs. newspaper ads.

3. Communicate with employees. If you’re worried about business, your employees are, too. Keep them informed about what’s going on, squelch rumors quickly, and be confident. Hold one-on-one meetings with key employees once a month to share information.

4. Refocus on customer service. We all understand the importance of world-class customer service, but it is easy to get complacent. Spice things up – for you and your customers – by finding new (yet cost-conscious) ways to take it up a notch. Repeat business from current customers is more important than ever before.

5. Network, network, network. Take the time – or make extra time – to network. Every meeting, every community group is a new opportunity to get your name out, find new business opportunities, and, most importantly, learn something new.

– Source: Tire Review Business Toolbox