I hate to repeat it because we all know it already:  2009 was a rotten year for most, with very limited cash available to do anything.  The media and consumer confidence indexes, though, suggest that things are turning around - spending has increased, money is coming in the door, and receivables are decreasing rather than increasing.  Yet some financial experts still project a "correction" sometime in 2010.  As business owners, we want to be confident, we want to be growing... but having been burned badly over the past 18 months, we're very reluctant to jump in feet-first.  Last year proved that we needed money in the bank.  Yet growth requires us to spend toward marketing, increasing inventory and capital expenditures.   What's a company to do?  

 

1.  Marketing.  It is critical to be "out there" and "on message" in this climate.  You want to reach your target customers in a way that they hear you over the din of the others.  Invest time in understanding your company's vision, mission, target customers, and messaging so you can connect with them every time.   From there, take advantage of the amazing results that can be accomplished through inexpensive or free marketing tools available.  These include do-it-yourself public relations, e-zines, newsletters, and social networking.   Determine how to reach your target customers using these tools and learn about best practices to maximize your efforts.  These efforts will take time (a precious resource) but not a lot of cash (a more precious resource in most cases) and, if done thoughtfully and strategically, will generate results for your business.   

 

2.  Savings.  When contemplating expenditures to fund growth, make sure your business maintains a certain buffer of cash.  The companies that suffered most during the downturn did not have sufficient (if any) savings to buffer against the impact of the recession.  If we find ourselves in a 2010 "correction," we can expect at least a few months' impact to business activities.  Have 3 months worth of expenses in cash that can support the short term business needs should you need it.