Small businesses are the ones that will be greatly hit during financial crisis. Unfortunately, small businesses are too small to ask for assistance from the government (unlike the big three) and they are unable to increase their sales aggressively because of the lack of capital.

They always have to rely on their daily operations and as consumers are experiencing hardships, sales will likely go down. Eventually, they will experience losses and would shut down if they do not make any drastic movements fast.

Small businesses today are literally counting the days before they declare losses because of the slowdown of business transaction.

Key Business Strategy

A key strategy in keeping the business intact even during financial crisis is to hold on to the important things and persons that will ensure proper business operations.

It is rare for small businesses to have something in excess but there is a group of people who will become part of the key operation.

Unfortunately, small business would have to cut off or terminate people if they want to survive. But there is an exception.

The business that relies on the service and not on product should keep its people as much as possible instead of concentrating on assets.

A small business owner have to point out the thrust of his or her business and cut costs as soon as possible.

Reconsidering Advertising

Advertising during tough economic times is always a point of debate among economists, financial and business analysts. On the other end, there are those that favor the status quo when it comes to advertising.

By being consistent with advertising, the business will be able to survive the challenges since they are showing stability over competitors. But there are those that oppose the idea of a status quo in advertising as they favor in reducing costs. This will ultimately save the company costs and will be able to survive the economy.

As a small business, you are probably wondering what to do about advertising. Staying on course or reducing costs in advertising is actually based on the local economic situation.

If you are in a community wherein most people are having a hard time with the economy, pushing your product more will have no effect whatsoever so it is a better idea to reduce costs in advertising.

On the other hand, if you see competitors getting more customers than you are even with the same services, advertising should never be compromised.

Controlling Cash Flow

As already indicated, small businesses have to rely on their daily operations to ensure business survival. They have to be strict in controlling their cash flow everyday or else they will face the consequence of not being able to operate the next day.

Controlling cash flow is also controlling credit in your store. You know that times are very tough for everyone but that will not give them an excuse to continuously get things in credit. Cash should be available everyday or else you will not be able to continue your operations.

Bringing Out the Best of the Business

If you are looking for something good in your business during this tough times, it is from the fact that you will be tested not in your business but also from your ideas as well as controlling your finances.

This is the best time to go back to the best service that you can offer to your customers. Instead of spending your efforts in so many things that might not be profitable, you can go back to the service or product where it will sell or will be very demanding.

These tough economic times should never get you discouraged in your small business. Be competitive in what you do best and you should be able to survive the recession.