Should growing small businesses postpone expansion plans and circle the wagons instead?
I’d say it’s a time when businesses need to be aware of the risks in expanding. If you’ve got the money, then it might be OK. But if you’re out looking for financing, you’ll have a hard time. What’s a common mistake many small businesses make when times are tough? In tough times, it’s critical to keep your marketing efforts up. It’s a mistake many businesses make. With all due respect to your publication, it might be necessary for some businesses to pull back on major ad campaigns. But they have to keep marketing efforts strong. Get creative. Start a loyal-customer program or offer referrals. Use the Internet. Look at your product mix. Some things won’t sell in a tough economy. Others will do really well. Now’s the time to focus on the money-makers. One of our members likes to say, “You can’t save your way out of a crisis. You have to sell your way out of a crisis.” What’s the best advice you offer startups in these economic conditions? Understand their numbers and cash flow. Given the
