Small Business Strategy for 2009
Because we’re in unchartered waters, small business owners might be frozen and lacking a plan for 2009. However, there is actually a lot they can and must do. The rapidly evolving economy in crisis and the transition to a new administration will require business owners to keep on their toes, stay informed, and be ready to act. More than ever experts are offering advice, and the savvy entrepreneur can take advantage of a wide range of strategies to weather this recession and have a healthy new year.
Keep Your Eye on Obama’s Ball
President-elect Obama is planning big expenditures to boost the economy, and smart entrepreneurs should be looking for a piece of the pie. There will be government contracts, and hopefully the SBA will make sure small business gets their share. Tax cuts for hiring new employees might also be on the way, as well as any variety of changes in tax laws that small business owners might take advantage of, so keep your eye on Obama’s ball.
Make Your Business a Lean Machine
Celia A. Klein, president of NAWBO (National Association of Business Owners) says small businesses have two choices: Panic or Prepare! She says now is the time to prepare a survival plan and recommends looking at every contract you have to reduce costs. Look to modify office leases, phone contracts, internet contracts, and your company credit card agreements. For example, you might not need as many office phones or cell minutes, and if you’ve had a business credit card account in good standing you should try to negotiate a lower interest rate. Or you can apply for a new card with better terms and transfer the balance.
Talk to Your Employees
Communicate with your employees. Discuss alternatives to layoffs such as job sharing, as well as alternatives to bonuses and raises such as allowing a worker to work from home one day a week if possible. This can be especially valuable to employees with a long commute. It is always a good idea to communicate with your employees so that they can be a part of the solution, and it is especially important during a recession to remind and train them about the importance of winning and keeping customers with excellent customer service.
Woo Your Best Customers
Determine which accounts or customers are the most profitable and focus on them. Make calls or send out mailings to offer special incentives to your best customers. Let them know how much you appreciate their business and go the extra mile with customer service.
Get on the Tech Train
Experts are saying now is the time to upgrade your technology and get on board with the web. More and more small businesses are coming around to doing business online as technology advances and the internet grows. Small businesses should develop a website to market their products or services to customers outside their neighborhoods or even their country, and to allow them to adapt easily to an evolving economy.
