Starting a biz in a bad economy. Advice?

We just celebrated our 1^st anniversary in business and are actively planning an expansion.  It’s nerve racking thinking about putting more money into your business when the economy is really struggling.  Advice for other business owners…

1. If it doesn’t make you money or save you money, don’t buy it.  You’ve got to watch your bottom line.  Think twice about investing too much in the future or giving back too much.  If you’re not profitable right now then you’d better hurry up and get into survival mode quick.  Be prepared to stay in survival mode for a while.
2. Watch your bottom line.  That means you…you watch your bottom line.  Know every transaction that affects your business.  If money is moving and you’re not really sure why or how, get wise fast.  Cash is king. If you run out, what are your choices?
3. Realize you’ll probably struggle for the next 1-2 years.  You can hope for a clutch holiday season, but don’t bet on it.  Plan on a lousy holiday shopping season and then think about on how you’ll survive until the 2010 holidays.
4. Just make it stretch to 2010.  Let’s face it; the financial and housing markets will take more than a year to bounce back, which mean the environment your business needs won’t be there for at least a year.  That means you need to survive until 2010.

One bit of reassurance is that if you can make it in this environment, then you will prove you have a valuable and winning recipe for success.  When this economy springs back to life – which it will – you will be experienced, prepared and in the market ready to capture the opportunity.