Tips to help small business owners keep their doors open during the downturn in the global economy.

Owners of small businesses are the most vulnerable when it comes to tough economic times, such as the world is experiencing at the present time. They often do not have an excess of capital needed to carry them through the tough times. At the same time, those that do survive this downturn in the economy are well poised to become forces to be reckoned with when the economic starts to bounce back to its previous levels.

Tips to help small businesses survive are:

1.       Take careful note of inventory levels and surplus supplies. If you notice a slowdown in your sales, order enough supplies so that you can take advantage of cheaper costs and therefore be able to offer your customers a discount on their purchases.

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2.       Revisit your accounts on a regular basis. This may mean sending out bills and overdue notices on a more frequent basis than you have done so in the past. Give bigger discounts for cash payments and if you do not already do so, take the steps necessary to be able to accept credit cards and debit cards. This will help to eliminate some of the wait time for customers to remit payments by mail.

3.       Keep in contact with the customers letting them know when you have new supplies available.

4.       Emphasize the value of your products over those of your competitors to draw in new customers and retain your usual ones.

5.       Make sure your employees are well-trained and are courteous to the customers. If you find that you are forced to cut back in order to cut costs, offer to cut hours instead of having to lay off one or more of your employees. This will retain their loyalty and keep them in good spirits.

6.       When you look at areas where you can cut back on your costs, consider your fringe benefits first. These are usually costly and will help you retain more of your profits.

7.       If you have been lax in your bookkeeping, there has never been a better time to keep it up to date. This will give you an accurate look at your financial situation so that you can get a better handle on your profit and loss.

8.       Instead of waiting until tax time to do a projection for the coming fiscal year, visit your accountant now. In this way you may be able to take advantage of some ways in which you can save money on your taxes and make changes to your estimated payment schedule.