NFIB

When Bad Economies Mean Good Business
03/ 19/ 2002

by Lisa Waddle

It's a bit hard to believe, but if you've been in business for less than 10 years, you haven't experienced a national economic downturn. The last recession was right after the Gulf War started in 1991 and lasted about 11 months.

The current economic condition may be new territory for you, but don't give in to pessimism. Downturns offer opportunities to grow your business because they force you out of the routine way of doing business, while giving you time to assess how and why you do things.

"Many small business owners look at a recession and say, 'We just need to match last year; if we can hang in there that's the best to hope for,' " says Aldonna Ambler, a small business growth consultant in Cherry Hill, N.J., who has started six companies over the past 30 years. "That's the worst scenario because then they won't change their behavior."

Rather than hunkering down, Ambler suggests stepping back. Get some perspective on how you run your business and whether you're on the road you want to be.

"It's a chance to get back to the essence of your business," Ambler says. "You may have blind spots in running your business that you can get away with in a boom economy, but those vulnerabilities will hurt you in a recession. So look at now as a chance to plug any leaks in your boat and make it more seaworthy for when the economy picks back up."

While it's more important than ever to watch your cash flow, realize you can't save yourself out of a downturn. Instead, focus on selling yourself out of a slump by developing new products, investing in new technology or cementing your relationship with current customers. Then when things pick up, you'll be on solid footing to expand.

Keep in mind there are many different ways to grow. You can add new products, enter new markets, add locations or employees, increase your productivity, license your ideas or buy another company.

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This article originally appeared in the February/March 2002 issue of MyBUSINESS Magazine.

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