The 6 Essential Small Business Recession Survival Questions
Author: Stuart Burkow


Profits for many businesses have taken a big hit...

And unfortunately, some are facing a profit death spiral
that brings everything into question -- and throws all
traditional business planning into the wastebasket.

Many business owners keep their business operating at
levels beyond what's called for by circumstances -- often
for extended periods of time while they are understaffed
and overextended -- by going into debt and hoping that the
profitable business they've experienced in the past will
come back to them (sometimes it will... but, this time
might not be one of them).

After a certain point, that's not possible -- and a drastic
cut in expenses is the only option. And, if you have to cut
to the point where you lose key people who handle essential
functions of your business -- then you're faced with a
business that isn't possible to be run at the same level --
or that can't produce the profits you were getting
previously.

This is a classic example of where strategy... rather than
tactics... can possibly be the best solution. You simply
can no longer continue doing the things you used to do --
since they are one of the reasons you're in the mess you're
in now. It's time to completely re-assess and re-evaluate
everything you do -- and be very clear about where your
profits are coming from.

Profits are what's important... profits are what pays
you... profits are the reason for having a business.
Because, without ample profits to comfortably cover your
costs each month (not cashflow or gross receipts) -- with
room to spare -- your only option at some point will be to
shut down your operations.

Hopefully things aren't that dire for you... and never will
be... and you can use these suggestions while your business
is comfortably in the black -- to re-examine your business
and further improve your prospects. But, if you're
experiencing a profit crunch... knowing the answers to the
following six questions are critically important to your
business's future.

Start by getting Very Clear

Take out paper and pen to write down your answers... while
you ask yourself the following six essential small business
recession survival questions:

1) "What are my most profitable business activities right
now -- that are likely to remain consistent and keep
producing in the current environment?"

(Consider if, in the best case scenario... doing only the
most profitable business... will that be enough to support
you?)

2) "Do these activities produce enough profit to warrant a
business to support them?"

(This is important... just because you've been in a
business or you want to be in a business... is not enough
of a reason for the business to exist.)

3) "What activities are least profitable -- that I can no
longer afford to do?"

(Don't delude yourself. If an activity produces below
average returns on your investment of time, money, energy,
or resources -- dump it. Don't wait.)

4) "What are my EXACT costs each month -- and what can I do
without?"

(You must know to the penny... no kidding. How can you
possibly know what you're aiming for unless you have your
exact monthly target in mind. No guessing allowed.)

5) "How can I sub-contract and hand off all work that
doesn't directly produce a profit"

(You must overcome the loss of your help by not consuming
your time with administrative tasks such as doing
paperwork, sales tax, accounts receivable, accounts
payable, etc. -- that can easily be done by other
professionals and specialists "as needed.") ... And,

6) "How can I leverage my tangible and intangible assets to
profit in different ways?"

(Here's where you can start to get creative -- and harness
your business in ways you might not have considered before.
We'll go into this a bit more, below.)

-----------------

One Profitable Business Alternative

First, a couple of observations about profitable businesses:

Sometimes what seems like good business because it causes
larger amounts of revenue, really turns out to be a lot of
trading dollars once you take a closer look at it. If your
employees were putting out work for you at low margins...
then anything less than ideal circumstances for your
business will cause a strain.

Whether you have employees now or not, you should
constantly be looking for ways to upgrade the work you do
to be more profitable business -- preferably ahead of any
slowdowns.

Also, your ability to make a profit in your field is often
unrelated to you actually doing the work yourself or
in-house.

Let me explain...

Often the best resource you have... the main thing that
really produces the most profits for you... is your ability
to attract, sell, keep, and re-sell your customers/clients.

The real profit-generating assets of your business consist
of your customer list, the brand you've built, the
reputation you have in the marketplace, the contacts you
have in your field, and your ability to conduct business
and sell. None of this has anything to do with actually
doing the work in your business that turns out the goods or
services.

If you have people who are buying from you -- and who you
expect to continue as customers -- what's to stop you from
sub-contracting out the work related to the
manufacturing... and setting yourself up as a broker for
the deals with your customers?

You may even be able to have a friendly competitor take
over your "physical assets" (or otherwise liquidate your
support of those operations) -- while you maintain and keep
your ability to conduct business with your clientele.

You have the knowledge about your business... you have the
relationships with your customers/clients. Give some deep
thought to how you can continue to transact business
without supporting the facilities and operations connected
with your business -- and you may be able to discover
something that will work better to produce profits than you
might now imagine.

Copyright 2009, Guerrilla Profits International


About the Author:

Stuart Burkow is co-author of the new book, Guerrilla
Profits: "10 Powerful Strategies to Increase Cashflow,
Boost Earnings & Get More Business" - with Jay Conrad
Levinson, the famed "father" of Guerrilla Marketing. You
can get a Free "Profits Launch Kit" with 5 Free Bonuses
worth $161... when you get the Guerrilla Profits book at
the $14.78 "Amazon.com" price (reg. $18.95) -- Go To:
http://www.guerrillaprofits.com/NewBook.html