6 Tips to Recession-Proof Your Small Business

Many small business owners are trying to find ways to keep their business alive through the economic downturn. There are many tips and resources that will help a small business stay alive through a slump in the economy.

#1 Budget and Manage Business Expenses

This is not the time to explore new and unorthodox methods of marketing, advertising and business management. Watch every penny, more important, but a price tag on your time. Make sure that every minute is profitable.

Quickbooks Simple Start (simplestart.com) is a free, easy to use accounting software that will help budget any home based business.

#2 Project Management

Several online tools let you track your time, projects, and clients. I use Freshbook.com. It integrates everything from time tracking to invoicing, and estimating a project to integrating through several different payment systems including paypal, paypal payflow, and more. Another service is billingmanager.com.

#3 Find a Small Business Mentor

A good mentor can be worth years of experience and education. They can help you avoid the traps and scams that have pulled down so many new businesses. Do not give up the search. It can take time to find a good mentor. Many people pretending to be mentors only have something to sell. Persistence is the key to success when looking for a mentor. Several place to find a mentor includes jumpup.com, twitter, and industry associations.

#4 Find a Networking Team

Networking is becoming the foundation of the new business methodology. A team working together, sharing their skills, and building their skill base can offer clients a broader spectrum of services, answer their questions, and convey credibility.

#5 Lower Operating Costs

There are several ways to lower costs. Skype lets small business owners talk from their computer. Vonage lets users build international phone service, with ‘numbers’ in several countries for only $7 each.

Another way to lower costs is to find help through ifreelance, guru.com, and ‘word-of-mouth’ instead of hiring a company. Building relationships is not about asking for a service for less. Relationship business strategies are built around trust and value, not necessarily asking for a discount.

These six tips can help a business not only survive a recession, but thrive no matter how deep the market dives. Survival is not difficult. Millions of dollars are made in a recession. Many people become millionaires in a recession. There is no reason it cannot be you.