Q: The stock market meltdown is frightening on many levels, but for my small business it could be catastrophic. What now?

A: No one likes to see the glass as half full more than me, but this is no
time for a rah-rah, "Let's think positive!" cheer-you-up column.

No, the truth is, we are in a heap of trouble my friends.

Watching one's retirement portfolio greatly diminish is frightening enough,
but equally bad is anticipating how a severe economic downturn might affect
your business and figuring out how you are going to survive.

Here's what I think you need to do now:

Hustle, and then hustle some more: However it is that you get customers, do
it, and then do more of it. And then keep doing it.

• If it's an advertising campaign, keep it going, and even consider
  expanding it.
• If it's cold calling, call more.
• If you network, join more networks and get out there even more.

Why? Because the sad truth is that some of the people who buy from you now
are going to stop buying from you in the next six months. Either they will
have gone out of business, or they will find your goods or services cheaper
elsewhere, or they will be tightening their belt and will cut back on
whatever it is you offer.

Whatever the reason,, expect to lose some important customers. As such, you
have to start replenishing the coffers now.

80-20 your customers and products: The 80-20 rule will be more important now than ever. Remember who your most important customers are, your vital 20% that create 80% of your income, and kiss their tushies. Offer more, for
less, take care of them, given them great service.

And while you are at it, work at targeting customers similar to your best
ones. Think about how you landed your best customers and recreate that
effort, wooing other potentially great customers.

Lower your prices: In the coming days, everyone will be looking for a
bargain, so consider giving them one. Even sellers of high-end goods are
going to be caught in the upcoming economic squeeze, and their customers too will be looking to save.

Have a sale. Lower some prices. Give away some time.

Keep your overhead low: You do not necessarily have to cut expenses now, but you should at least create a plan for how and where you will cut back if
necessary. If you have some employees that might need to be let go for
example, put a plan in place (for yourself) as to how their work will get
done, and by whom.

What about moving to cheaper digs?

Note: Whatever cost-cutting measures you employ, just be sure not to cut
back in those areas that get you business, especially your advertising and
marketing.

Institute some shoestring marketing: When times get tough, you have three
options for keeping things afloat: You can cut back (see above), borrow
(good luck!), or make more.

Team up: Now is also a good time to consider forming some strategic
partnerships with like-minded entrepreneurs. You can share the cost of the
endeavor, you can share the labor, and you can also share contacts and
customers.

The good news? I have been writing this column for over 10 years now, and
this is the third time I have had to write about a recession (after the
dotcom bubble burst, after 9/11, and now.)

We made it then and we can make it again.

Today's Tip: Another good practice now is to get invoices out promptly, and
make sure they are paid promptly. When people start to juggle, as they will,
you don't want them thinking that you are one of the ones that they can
easily put off.