by Shaheen Darr

Created on: November 04, 2008   Last Updated: November 11, 2010

Bigger businesses are hit twice as hard in an adverse economic climate because of the larger number of departments and branches involved. They have bigger loans and financial commitments that have to be honoured to sustain themselves and maintain their business credibility. A smaller business, however, can adapt better and quicker because of its size and changes can be made without too much bureaucracy involved. Even for the most resilient small business owner some cutbacks will be necessary to survive and here are ten tips that can help to keep you surviving and thriving through the credit crunch.

1. Customers and their requirements are important as what they buy from you keeps you in business. Make notes of these requirements and needs and ensure these are stocked when the customers return so that they do not take their business elsewhere.

2. Introduce new product lines in keeping with market trends and at all times remind the customers that they are important. Be helpful and provide alternatives for any products that you do not stock and be pleasant so that they come back to you. Making your customers feel important and having a friendly relationship with them is one advantage that smaller business owners can cultivate easily. For larger concerns this is quite difficult to maintain due to changes in staff or the number of customers involved.

3. Introduce new services to your customers like free home delivery within a small radius. This is especially attractive to the older customers especially in the winter months. Keeping the business open for slightly longer hours can increase sales by attracting more customers.

4. Credit control is very important to keep the business running so make sure regular statements and chases for outstanding payments are made to remind customers to pay on time. This will keep the cash flow of the business on track.

5. Negotiate better credit terms and discounts with suppliers so that cheaper prices can be passed on to the customers

6. Any overstocked items can be offered as sale items or in "buy one get one free" special offers.

7. Cut back on unnecessary overheads to reduce the burden on the business. Telephone usage, gas, electric and petrol expenses are among some expenses that can be controlled. Cutting back on staff is another option that might be considered to reduce wage payouts and consider replacing them with the help of family members.

8. Keep accurate monthly financial records to give an idea how the business is doing so changes can be made in weaker areas.

9. If you have a business credit card do a balance transfer to a 0% APR credit card to reduce monthly interest charges. The introductory offers on these credit cards include a low APR for at least 12 months and perks like discounts in petrol, air mile vouchers and cash backs on purchases.

10. Improve the general appearance and cleanliness of the shop so that it looks its best.

Remember that what goes down has to come up at some point so keep your attitude positive, be prudent and looking after your loyal customers will help you stay amongst the survivors of the current economic climate.

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