Tough Times for Small Businesses

These are tough times for small businesses. Just consider the trickle down effect: a large business in town is forced to layoff employees, the former employees are no longer able to buy goods and services and they get behind on their bills. The result for the small business is decreased sales and receivables that are difficult to convert to cash. Loans are more difficult to obtain and credit card interest rates (how many businesses get started) begin to skyrocket due to the nationwide default rate. No doubt about it, these are tough times.

The important thing for small businesses in this environment to remember is to focus on what you can control. You can't control whether or not the large employer in town must layoff workers and you usually can't influence the immediate buying habits of the affected employees. What you can focus on is securing a larger piece of a shrinking pie. Sure there may not be as many buyers out there - but people are spending money. Your job is to give them an emotional, compelling reason to spend some of that money with you.