As the media talking heads and politicians begin to declare an economic recovery at the behest of the market makers, the small businessman is far from feeling its effects. Through both recession and recovery, the decisions that the small businessman makes and the strategies that he employs alone will determine the fate of his business. Below are five proven strategies that have been proven to help small businesses thrive not only in good economic times, but in times of economic recession as well.

1. Survival of the Fittest. A recession can be viewed as proof of Darwin’s theory, as businesses without tight structure, excess capital, and plans for rainy days will inevitably fail, leaving those that remain the ability to expand among a much minimized pool of competition. To be the one on top, service oriented businesses would do well to strive for efficiency in fulfillment of their service. Product oriented companies will survive if they provide their buyers with the easiest system for purchase.

2. Effective human relations. Economic recessions bring an abundance of workers, but only the businesses with the best hiring practices will be able to take advantage of this increased labor pool. Businesses who are able to think long term with their hires, instead of simply hiring people to plug holes caused by the recession, are the businesses that will thrive after the recession abates.

3. Going virtual. Businesses able to streamline by taking advantage of virtual help have a definite leg up in a recession environment. Hiring virtual employees cuts down on operating costs drastically, as well as allows for greater expansion potential. Also, online meetings are by definition more efficient; it allows businesses to focus solely on getting the work done most cost efficiently without geography being a concern.

4. Brand management. Most businesses falter by trying to offer more and more in an environment of less and less. Customers in a recession are looking for efficiency, not endless add ons. The business that uses a recession to showcase the strength of its product or service niche is the business that will bounce back afterwards, with increased reputation to boot.

5. Necessity is the mother of partnership. Egos go out the window in a recession. Lean times allow for partnerships that would usually not occur, which can take the pressure off of all involved, giving much needed leverage to wait out the bad times.

As the economic recession has created quite the obstacle for businesses, we would love to hear how you, as a small business owner has managed to weather the economic storm.  Did any of the strategies stated above seem to work for you?  Feel free to post comments below.

Article source: http://www.aerofund.com/blog/index.php/2011/03/member-bbb-bounce-back-businesses/