Small Business: Surviving a Cash Strapped Economy

ign="center">online advertising sites. As more and more people
In this economy, we know that survival requires ahave access to the internet and begin their search
change in strategy for the small business owner.there, it makes sense given the cost of print
Yet, for many who already operate lean budgets,advertising.
the adjustment will not involve the output of- Co-op Advertising
additional funds for projects and advertising. OnAdvertising arrangements between business
the other hand, this is where a sharing ofowners (manufacturer) and vendors are also
resources with other business owners mightbeing utilized more. This is a form of co-op
make sense.advertising where both parties share advertising
They are experiencing declining sales, increasingcosts. A bartering arrangement can take a
costs and decreasing lines of credit. Plus, they arestruggling business off life support. The vendor's
realizing a shortage of cash that cannot bebrand can create awareness of their product.
generated quickly enough to stay competitive. It's- Bartering
no wonder advertising and marketing budgetsBarter Exchanges are on the rise. Although
have been substantially reduced, it not eliminated.bartering is the exchange of goods without the
So, what's next for the small business owner, andinvolvement of cash, there is a monetary value
how do they survive? In some cases, a businessto this arrangement, and does require an accurate
cannot be saved, as the pressures of thisaccounting of the transaction. as in the above
economy can weigh too heavy. However, forcase of exchanging advertising exposure for a
those small businesses determined not to give up,donated product or service. Some entrepreneurs
there is help and resources from all 3 branches ofare using this method as a way of building
governmnet; city, state and federal?business relationships. In most cases, it is hoped
First, there are two choices these businessthese new relationships will result in paying
owners must make; to struggle through, taking nocustomers.
action, while hoping for a quick economic- Diversification
turnaround or map out a plan for survival. For theDiversifying product offerings is a good business
entrepreneur who is determined to come out ofstrategy, and should always be considered.
this still standing, here are some approaches beingLikewise, individual small business owners can tap
used for the purposes of gaining new customers,their own skills, as well as, explore investment and
continuing to build business and ultimately increasebusiness opportunities to create income.
cash reserves.Robert G. Allen wrote a book called Multiple
Expand Marketing StrategiesStreams of Income¹, which is 350 pages and
- Increase in networking:18 chapters of ways to diversify one's business
Networking groups are increasing in number andinterests. Allen talks about getting paid for using
so are the participants. Business owners are usingskills that many business owners already possess,
these groups more frequently to increasesuch as:
business and gain referrals. Some are attending 5- Selling Information - Desktop Publishing - Website
or more networking events per week, 2-3 perBuilding - Public Speaking
day. Also, memberships in online social networkingBecause most business owners must wear a
groups is increasing.multitude of hats, these skills can be turned into
The quality of a networking format and agenda issideline profits.
also becoming more useful for the entrepreneur.It is well known that anyone who starts a
Many local networking groups are no longerbusiness must be willing to be uncomfortable
getting together only for lunch or to exchangemost of the time, because we are always
business cards. This type of networking isstepping outside of ourselves. Clearly, this is one
non-beneficial for someone looking to grow theirof those times when it cannot be business as
business through substantive business connections,usual. In these days, business as usual could mean
as little time is made for actual networking.no business at all; so, isn't surviving in this
An alternative is a networking group structured toeconomy an extension of that belief? Shouldn't
provide brainstorming and consultant advice, freesmall businesses be prepared to make
of charge. Here is how it works; a business isadjustments, to change strategies, and to adopt
randomly chosen each week to receive expertsome of the methods listed above? There needs
advice, and the other networking group membersto be a viable plan that can lead to implementation
critique the chosen businesses' strengths andand cash generation. To do nothing, can be fatal
weaknesses, as well as, its marketing strategies.to the already struggling business. And, no survival
The business is offered advertising and marketingplan should look like that.
suggestions on how and where to attract moreSource:¹Multiple Streams of Income¹,
customers, based on the needs of the businessRobert G. Allen, Second Edition
and market conditions. Because this format givesDebra Barrow owns a small homebased business,
the business owner a greater opportunity toand is also an Affiliate Marketer, specializing in
network, retention is high.online stores. She has backgrounds in education
If a networking group cannot be found with thisand corporate business and financial analysis. She
meeting outline, it can easily be established.is a member of IAHBE, International Association
- Complimentary services and productsof Home Based Business Entrepreneurs, a division
In exchange for publicity and free advertising,of SFI
some entrepreneurs are giving away services and(Strong Futures International)
products to showcase their abilities and gain newReport this article
customers. The company or event receivingThis article is free for republishing
these freebies are often prepared to provide aSource:
great deal of advertising exposure to the donatingRepublish this article
business. This is somewhat in the form of
bartering, as discussed below.Ask a Question About this Article
- Businesses merging:>> Can i legally share my office in
In order to strengthen their businesses, somehackensack? Do i need to register the person or
entrepreneurs have decided to merge. Thisbusiness sharing part of my office space?
includes competitors. Merging reduces costs as>> Can I reinstate if I fall behind on
common tasks performed by both companies arepayments?
combined.>> How can I make my e-book website
- Online advertising:stand out from all the other ones?
Due to cost, many entrepreneurs are reducing>> I'm especially struck by the truth in
their print advertising while increasing onlinethese ...
advertising. Many are switching to the popular