Tough Times for Small Businesses

Welcome to the Growth Mindset Blog. Joy and I will be sharing our ideas and observations through this blog. Join us as we chart a path through this difficult economy.

I was recently at a repair shop where a number of small business owners were gathered at the table. They were all discussing the wild week of ups and downs - mostly downs in this economy and how they were all holding their breathe each week when it came time to make payroll. Each buisnesses had seen things slow down, people were putting off any unnecessary items to see what will happen.

Worrying about what to do is one way of handling the situation. Another is what my southern american friends do - they get the recession plan out of the drawer and get busy implementing whatever they have been saving for these times. This plan may involve layoffs, controlling spending, differing purchases, managing their line of credit, carefully staying in touch with receivables for timely collections and cashflow and a hundred other ideas.

I have been working with many businesses on their plans to manage in this difficult economy. On strategy that seems to be emerging is to create strategic partnerships and alliances. Sometimes going it alone is not the answer and new partnerships or alliances can open up new services for the same customers or provide access to new customers for your business. I always think of code share and the airlines - it is what they did to create demand, reduce costs and change the way they operate.

So what is your plan in the drawer? Do you have a three year plan to manage in a down economy? What can you do to control costs, manage debts and hold onto your customers and sales volume.