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On the Precipice

"The plausible outcomes range from the gradual and benign to the more precipitous and damaging."
- Timothy Geithner

Although Mr. Geithner was speaking of the U.S. deficit, his words are quite apropos and pertinent to any discussion of small business survival. You see it in ever increasing numbers in the cost of goods delivered to your door and in rate hikes for necessary services. It shows on the bottom line of every transaction, every account receivable statement, every deferred or reduced pay check that your business pays you, the owner. Each day your business slips ever closer to the precipice of failing.

How can a small business owner keep the doors open during this daily tightrope walk, this current dance on the edge of "precipitous and damaging?" Are the usual staples of cutting costs, better inventory management and making smart fiduciary decisions the only options you can resort to? No. In fact those options should be a regular facet of running your business on a daily basis whether the economy is good or bad.

Don't Stop Promoting

Be creative. Give something back to your loyal customers. Institute a "buy 10 get one free" card or similar idea that would be appropriate to your business. Send thank you cards or letters. Have a client appreciation party at your office or place of business. Even in today's drive through, microwave, instant gratification world, these ideas can pay long term dividends and keep your customers coming back to you.

The biggest challenge in this area is finding effective advertising methods with fewer advertising dollars to spend due to decreased business income. Examine your advertising dollars with a critical eye during these times. Find out which dollars give you the most return and weight your advertising accordingly.

Continue Customer Service

Look for ways to improve your customer service. Price is, quite often, not the primary consideration in a buying decision, even in a slow economy. Clients want to know that their business is appreciated, that they can get help if needed, that they can talk to someone who understands their specific problem. They want to do business with someone they know they can trust and who is genuinely happy to have them as a customer. Obviously, your prices have to be fair and reasonable, but that does not necessarily mean being the lowest.

We often think of customer service as that portion of business that deals with clients or customers only when they are angry or have a problem: tech support,

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