A common misconception is that small businesses fare poorly in economic slowdowns.  Solidly run small businesses actually hold their own quite well.  Rather than putting their head in the sand and riding out the slowdown, successful companies control costs and actively look for new opportunities.  The following are some commonly sited best practices:

·  Save money and time -  Look at fixed and variable costs, with an eye toward absolute necessity and whether more favorable terms can be negotiated.  Efficiently manage your collections and take advantage of every possible discount on payables.

·  Revisit your business plan - sit down and read it from the perspective of someone investing in your business, identify information you need to know in order to make decisions about the future and make revisions.  Approach the future with the mindset of a start-up entrepreneur.

·  Seek supporters and advisors - if ever there is a time to network, this is it.  Join civic and professional organizations, which can offer powerful support, and form an advisory board to brainstorm possible solutions to your identified challenges.

·  Make customer satisfaction your priority - Your customers are your lifeblood.  Spend time listening and be innovative in meeting your customers needs.  Find out if there are ways to expand what you do for them and sign long-term deals.  Look for changes in their behavior, contact them to identify issues, offer solutions proactively and you will strengthen your relationship for the long-term.

·  Advertise and sell to diversify your customer base - In order to expand your customer base, you need to form alliances, advertise smartly and sell effectively more than ever.  Demand a greater return on your advertising dollars.  Focus sales on what you can control, such as sales activity that leads to sales (eg, making phone calls, networking, scheduling appointments).  Alliances with vendors or new distribution channels can help you to reach a broader spectrum of diversified customers.

·  Seek new business opportunities - With proper due diligence and a solid financial base, this is an opportune time to broaden your base with a new service offering to existing customers or a strategic acquisition of a complementary product or company.   A simple example is for a retail store to establish an internet sales site to expand its reach.  Focus on strategic integration of any acquisition to maximize success.