This current economy is just devastating.  While the Wall Street Journal contains story after story of the problems of large corporations, the small business market is also getting hit.  I have clients and business colleagues whose sales are down over 75% and who are facing major cash flow problems.

In my view, tough times are much rougher on small businesses than large corporate businesses.  Having to layoff employees is like turning away family versus just cutting headcount from a budget.  Vendors and other business partners are usually also good friends and so not being able to pay them is a lot more personal and emotional.

This is a time when good business planning comes in handy.  Many start automatically to think about throwing in the towel and filing business bankruptcy. Instead, you should try to think creatively.  Use your entrepreneurial and visionary skills to craft ways to get through this down turn.  Work together with your creditors and employees to see if there is a better solution than just the obvious one of business implosion and termination.

If you can figure out a plan for how to get through the difficult times, you will have a leaner and stronger business for when the economy does recover.  And, if you are lucky enough to be okay during this time, then you should be thinking expansion not hibernation.

You see, your competitors are cutting back.  You should be thinking about how to leverage the current situation to gain market share and establish a larger presence in your marketplace. Now you need to be cautious, but with any negative there are always positives and it is the astute and brave entrepreneur who is able to see and capitalize on them.

Filed under: Entrepreneurial Mindset

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