If you read the news, you know that the economic outlook is not good. Even with government trying to put into place a plan to jump start the economy, things might not turn around as quickly as hoped.

Owning a small business with the economy is slow can be stressful. However, there are steps that you can take to ensure the health of your business even in rough times.

1. Keep in contact with your customers. Review your current customers’ buying habits and offer discounts based on these habits. Offer monthly or weekly specials such as buy one get one half off or 10% off an order of $20 or more. Thanking your customers for prior purchases keeps them coming back.
2. Monitor your expenses. Be sure to forecast your expected sales monthly (or even weekly) and try to lower your expenditures as much as possible. This might not be the best time to purchase new equipment or other large purchases. Set a goal to try and decrease your expenditures by 10 to 15%.
3. Look over your inventory. Try and move as much current inventory as possible. If you were thinking of expanding, lower your current inventory first. If older items are not selling, discount them as much as possible to still turn a profit or, if possible, return items to suppliers for refunds.
4. Renegotiate. Don’t be afraid to renegotiate terms with suppliers, landlords, lenders, etc. Make sure that you are clear that you plan to pay off a debt completely, but may need lower payments until the economy turns back around. Lenders would rather have some money in their pockets than take on a defaulted loan. Suppliers may also be willing to sell items at slightly lower prices. It doesn’t hurt to check.
5. Check out the competition. Slower economic times can mean less competition. If some of your competitors have gone out of business, consider increasing advertising costs to take advantage customers looking for a business. Make sure that these costs fit within your budget and don’t go overboard!

It is critical that you monitor your business closely during slow economic times. This will allow you, and your business, to weather the storm.