In this post, Roland from In Business shares some valuable advice about the recession.

Recession! Recession! Recession!
How many times a day do you hear that word? I wish I got paid £1 a time! I could make a great living that way! From the way that the media were reporting this anyone would believe that no one was buying anything or able to borrow any money at all!

The fact of the matter is however very different. People are spending and some are borrowing. Yes, it is more difficult but if we were to follow every word that the media puts out we would all think that there is no point in living.

The truth is that for entrepreneurs great opportunities are there for the taking. Every business that closes down used to have customers. Those customers now need to buy their goods and services from someone else. Every shop and office that becomes empty is now available at a lower rent or price to buy. If you need a car, computer, office equipment or just about anything else you can buy it at knock-down prices from businesses who are panicking over their survival.

I have recently heard from many successful business people that they actually started their businesses in the last recession. The very reasons above helped them get their fledgling business off the ground.

How can an entrepreneur make sure that their business survives when others will not? After all many well known companies have closed and many more have serious problems. The answer is not so difficult although the application of the answer may be for some.

1. Offer value.
   Do not try and be the same as other businesses. Be better not cheaper.  Look at what you can do to give your customers good service and good products. Add value by such things as faster delivery, longer warranties, a better environment in your store, or a clearer better designed website for online customers.
2. Cash Flow
   Cash is king! Without cash your business is dead. Make sure that you forecast your cash properly. If you issue invoices make sure that you chase up outstanding payments regularly and take appropriate action on late payers.
3. Control Costs
   Keep a careful eye on costs and avoid wasting money. However do not cut costs across the board. Each cost cutting exercise must not in any way impact negatively on your income. A retailer could reduce the sales staff and strangely enough the sales of the store could go down because the customers are no longer receiving good service. I have seen this done and the management thought they had made a good decision because the sales had gone down so it was a good job that they reduced the staff levels!
4. Look after your clients
   An Indian restaurant in my town has recently won a local business of the year award primarily because of the way that they look after their customers. Their secret is that they know every birthday and special anniversary of their customers. They send cards and special invitations to meals on these dates, they have even invited clients to their family weddings in India! If they have not seen a client after a certain amount of time then out in the post goes a special voucher for a meal. Keep in touch with clients and they will not only come back but will recommend others. Do not constantly try to sell them things. A newsletter that keeps them up to date will work wonders. I have found this very effective in my business as a mortgage broker.
5. Speed of Action
   The most successful people have proven to be the ones who action their ideas the
   fastest. That does not mean rushing into something without thought as that could be costly. However once you are aware of a change that needs to be made then do it fast. For instance you may be reading this and think, “I could do with a database of my customers so that I can keep in contact with them” So what are you waiting for? Put it into action today, yes NOW! That may mean doing it yourself or sending an email or making a phone call to someone to do it. But above all else do it!
6. Be Positive
   Do not reflect a negative attitude in your business. If people ask you how business is going, then tell them that your plans and actions are working to keep your business strong and growing. Tell them that you see a great future for your business. This will in still confidence in them to use your services and buy from you. This is not dishonesty as dishonesty in business will get you nowhere in the long term but will be a true reflection of how you see your business.

Can you beat the recession? Yes you can! Listen to advice from reliable sources and learn from others that are successful and have been through these times before.

Roland Millward is a mortgage broker based in Trowbridge, Wiltshire. He blogs about business at In Business which is one blog you should check regulary! One post that I really like is Power of the Pause.