Santa Barbara, CA April 28, 2009 – With large corporations in dire economic straits and more than half a million U.S. private sector jobs lost so far in 2009, small business owners are wondering how they can survive, while businesses much larger than theirs are shrinking or shutting their doors. Women’s Economic Ventures (WEV) has been helping people in Santa Barbara and Ventura counties start and grow their own businesses since 1991 and knows that, while times are tough, there are some things small businesses can do to stay in business during economic downturns – and come out on top once the crisis has passed.

“Economic transformation in the U.S. has historically been driven by the development of small business, which generate 50% of private sector jobs,” said Angel Cottrell, Client Services Director, Women’s Economic Ventures.  “At WEV, we are committed to helping small businesses start up, grow and thrive -especially in this down economy when small business supports our community by helping to keep money local.”  

To help small businesses stay afloat during these tough economic times, Women’s Economic Ventures would like to offer the following advice: 

1. Stay open.  A business that can make it through this economy will come out on top.  Do whatever it takes to keep your business open even if it means getting a second job. Other businesses are closing right now, leaving those customers for you.
2. Be cash positive.  It’s much more important than ever to maintain your short term cash flow.  Evaluate what you have coming in and going out on a weekly basis.  Be flexible and creative with payment terms with your vendors and customers.
3. Pay attention to customer spending trends.  Adjust your offerings based on what you are seeing day to day with your customers.  For example, people are continuing to eat at restaurants during this economic downturn but are ordering the less expensive items on menus.  Restaurants would do well to offer specially priced meals and beverages to keep current customers and attract new ones.
   
4. Be honest with your team. Be transparent and communicate openly with your team.  If the economy is affecting your business negatively, this will help mitigate fear and enlist your staff. Without clear communication, assumptions grow unchecked. Clear and transparent communication creates an “buy in” and creates an environment that values information. Information is what gives you, the business owner, the ability to act and adapt quickly and effectively. Useful information flows both ways, from you to your front line -- and from the front line back to you. 
5. Communicate proactively with all stakeholders in your business. This includes staff, customers, and vendors. Putting others on the same page can create great reciprocity. Communicating your situation and how you are responding can build loyalty, talking with your customers about their needs at this time can help you adapt and survive. 
6. Be impeccable with your word.  This is a fundamental rule for business, but especially now. Be the one that keeps your word, at all times.
7. Don’t be quick to cut all your expenses.  Before cutting spending, first look at where you can increase revenues. Then look at where you can control your short term cash flow. Cutting expenses won’t solve all of your problems. When you do need to cut, talk with your front line staff. They can help you understand what could be trimmed without affecting the quality of your product or service.
8. Think long term.  If you’re cutting back now, in staff, for example, it will cost you that much more to get that staff back once the economy has recovered.  Plan for the economic upswing and maintain your resources. 
   

About Women’s Economic Ventures (WEV)

WEV is dedicated to creating an equitable and just society through the economic empowerment of women across the globe.  Since 1991, WEV has been providing self-employment training, technical assistance and microloans to primarily low-income women. Today, WEV offers a continuum of programs for women at every stage of the business lifecycle to help startup, launch, grow, and sustain a business. Services include comprehensive self-employment training program, advanced training, business counseling, coaching, and networking opportunities. WEV’s service area has grown to include north and south Santa Barbara County and Ventura County with offices in Santa Barbara and Oxnard. WEV’s Small Business Loan Fund provides start-up and expansion loans to pre-bankable microenterprises.  WEV was designated a Community Development Financial Institution (CDFI) in 1999 by the U.S. Department of the Treasury.  In 2005, the Small Business Administration recognized WEV as the most productive Women’s Business Center in the nation. For more information please call 805-965-6073 or visit www.wevonline.org.