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By Knight Kiplinger

The Kiplinger Washington Editors

Jan. 2, 2009

2009: A Rough Start
But a Better Finish

The recession will be painful through the first six months of the new year, but a recovery will start in the second half. This week�s Kiplinger Letter looks at the pluses and minuses of the economic picture and explains how you can tell when an improvement is close.

ALSO IN THIS ISSUE: Metal Prices, Small Business, Selling, Health, Obama's Cabinet, Regulations, Water Highways, Coal and the Middle East

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About a year ago I started a golf accessory online business . I would like to know how I can best market the site to get more visibility from customers as well as differentiating myself from other golf online store.

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Preparing a Small Business for a Slowdown

Don't be timid in a slowdown. Sure, cut expenses and watch your cash flow, but also consider diversifying, marketing aggressively and beefing up customer service.

Worth Reading: The Quick Take from Kiplinger

March 2008

Carl R. George

AICPA

Carl R. George is the current chairman of the National CPA Financial Literacy Commission, a project of the American Institute of Certified Public Accountants. George is CEO of Clifton Gunderson LLP, a national CPA firm of over 2,000 people, with offices in 17 states and Washington, D.C.
The American Institute of Certified Public Accountants is the national professional organization for all CPAs.

Recessions are unnerving, especially for small businesses, but they don't have to be intimidating. Now is the time to consider moves that will strengthen your business, because a slowdown -- if not a strictly defined recession -- is here and going to stay here for a good bit of the year.

Certain defensive measures are in order. Carl George, a CPA who is chairman of the National CPA Financial Literacy Commission, suggests tightening up on discretionary spending and keeping better track of cash flow. Take a careful look at accounts receivable, too, and start working closely with big customers who are behind in payments. "If they go under and cash is tight, that could have a huge impact on you small business," he writes. "Similarly, review your agreements with suppliers. Maybe you don't have to pay in 30 days; maybe you can pay in 45."

But don't just hunker down. Try to keep your bottom line well in the black by strengthening your business as well. Don't include marketing in your crackdown on expenses. Revisit long dormant customers and try to expand sales to steady existing ones. Consider offering new products and services, and search for fresh niches. "Somebody's always making money, even in a recession, so if you can find out where those pockets are and if you have services you can provide to them, maybe you want to expand those services," George urges.

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