When you are a small business owner you are your own front line of defense. So when the economy goes in the tank it's up to you keep your business a float!

"But if the economy is in the tank, can I really keep my business alive or even better yet thrive despite the decline in our economy?"

Absolutely you can! You won't be able to keep doing business the exact same way you have been doing it up to this point but with some small adjustments and some creative business savvy your business can thrive in a recession.

What is a recession: a significant decline in economic activity spread across the economy lasting more than a few months, is visible in the Gross Domestic Product (GDP), real income, employment, industrial production, and wholesale-retail sales.

How long will it last: According to the National Bureau of Economic Research (NBER) since WW II a recession on average lasts approximately 11 months. However with the housing, construction, and automotive industries already in the tank, and unemployment reaching double digits we know that this one will last longer.

What happens during a recession: There is a big exchange of money changing hands , there are people losing money and new people are making money. People's mindsets shift about security, income and financial well being. They become more defensive of their bottom line and ramp up efforts to insure their stability. They look for supplementary income and focus on the three areas of their financial life: investments, housing, borrowing, and employment.

These industry generally don't take as big of hits if any at all:

• Health care

• Energy – alternative sources

• Food

• Environmental

• Security – law enforcement, fire and rescue

• International business

• Ice cream sales

• Cosmetic & Beauty sales

• Love-Dating services

• Hollywood / gaming

• Alcohol

• Repair services

• Funeral Services

• Recovery specialists – repossession, debt collections

• Bankruptcy law

• Discount retailers/ Wal-Mart/ Thrift stores

• Super wealthy

• Organized Crime

• Network Marketing

• Those who provide services that sustain basic needs that society can not live without
• Small businesses with low overhead
• Businesses that have financial flexibility and low to no debt
• Businesses that have operating flexibility
• Industries not supported from discretionary income
• Businesses who leverage the Internet
• Businesses who leverage technology and keep their skill sets current
• Those who offer product and services that help people save money, offer convenience, security and peace of mind, solve problems and replace income.
• Business entrepreneurs who roll with the fluctuations and make necessary adjustments to their business plan, and leverage current economic trends

Avoid Fear Paralysis- You will need to make adjustment and get out of your comfort zone. Getting out of our comfort zones causes anxiety which can cause us to believe that what we want is impossible and triggers us to "give up". Taking action is the most effective antidote for fear.

Use Your Passion- There is a personal reason why you are in business, resurrect that passion and mission to drive you to new levels of success.

Leadership- People will follow others with courage and vision, whatever you project will become infectious to your sales force, employees, partners, team members.

Invest in a Brand- Its not just about a product, what is your mission-motto-objective-creed.

Keep Marketing- Studies prove that the businesses that increase marketing investments during a recession grew market shares, increase margins and had better long-term growth than their competition.

Be Creative - Let your creativity fly to produce breakthrough ideas. All ways be creating more options for yourself!

Diverse Product Offerings- allows you to have a larger geographic presence and create multiple streams of income which will offer more financial stability.

Tap New Markets - Look for niche markets that you may have overlooked in the past for new growth and replace lost sales.

Add Value and Build Customer Loyalty- Give them what they want develop trust and they will become true brand believers and loyal customers forever.

Maximize Your Cash Flow- implement strategic Pay off to all your debts, increase your money's performance, increase cash reserves at months end and build reserves.

Invest In Yourself - you are your strongest asset so by developing your mindset and skill set you are investing in your business success.

Integrate all forms of communications - reach your customer base through multiple avenues on and offline, but always deliver the same message across all platforms used.

JV Partnerships - doing joint ventures is a great way of stimulating sales, this allows you to leverage work that has already been done.

Invest in people - build their skills, capability, and knowledge then watch your bottom line soar.

Be accountable - by being responsible for your actions and results it will empower you to reach new levels and break old stigmas you have about your business potential.

Do The Right Thing - your audience will notice and reward you for giving back.

Remember that everything cycles so we must be a constant state of progression to keep our business competitive and ahead of our competition.

 For more information on recession proofing your business contact Cammy Stubbs