SmallBizResource Blog -- Economy

When Times Get Tough, Small Businesses Learn To Share

Posted by Fredric Paul Monday, Oct 6, 2008, 03:01 PM ET

What are small businesses doing to cope with the economic situation? Here are a couple of peeks from Utah and California.

In Utah, The Salt Lake Tribune says businesses are watchful, but not gloomy. Utah banks haven't been socked with portfolios of bad loans, says reporter Paul Beebe, and jobs are still growing, albeit more slowly than before. And he found a couple of small businesses that are also still growing.

Still, Beebe quotes Candace Daley, of the 4,000-member Utah chapter of the National Federation of Independent Business: "They are very nervous. Most of them are being cautious, tightening in their additional spending. There are several businesses that are having a hard time securing short-term loans."

In San Francisco, meanwhile, the SF Chronicle's Julian Guthrie found a group of local businesses that are working together to stay afloat.

"In the Marina neighborhood known for its bars and shops, small-business owners are banding together to collaborate on events and promotions, and share ideas and retail space...

And they have put together a brochure, the Wedding Ring on Union Street, promoting the district as a one-stop bridal shop, with businesses offering everything from flowers and gowns to jewelry and photography"

Guthrie has also gathered six tips for small businesses from Gene Fairbrother, an expert on small business strategies who works for MBA Consulting Co. in Dallas:

1. Look at unique marketing opportunities.
2. Get together with other retailers to create a joint marketing program.
3. Offer specials that will draw people in.
4. Focus on communicating better with existing customers.
5. Be prepared for a steeper drop in spending.
6. If you have a credit line, consider getting it increased. If you don't have one, take a look at getting one, even with your personal credit card. "If you're in good or decent condition now, banks will still offer credit," Fairbrother said. "It's easier to find money when you don't need it."

And I'd add number 7, based on the San Francisco story above:

7. Don't be afraid to ask for cost reductions from vendors, including landlords and other suppliers. In many cases, there may some wiggle room from vendors who'd rather keep your business at a reduced price than lose you altogether.

Economy