The mortgage crisis has spread into the broader economy, threatening the revenues of startup and existing small businesses nationwide. And though skeptics vary on the potential magnitude of the recession, most agree small businesses regardless of industry, location or size will be affected.
So what steps should a small business owner take to fare the recession?
- Maintain personal and business credit history by making all payments on time
- Negotiate discounts on office supplies, phone bills and other miscellaneous expenses
- Reduce indirect expenses and spend money only where and when required
- Secure lines of credit and term loans from banks before they tighten small business lending standards
Despite the ominous economic forecasts, recessionary periods are excellent times to identify areas of growth. Small business owners who can build up cash reserves to access these opportunities will survive the recession and come out on top.