Small businesses are the backbone of the American economy. According to the Small Business Administration, small businesses are responsible for generating 64 percent of net new jobs over the past 15 years. And in his latest stump speech, President Obama called small businesses the places where most jobs begin.

Despite their value, the nature of small business makes them particularly sensitive to a volatile economy. Millions of U.S. small businesses — especially in the retail, business services and housing industries — were made vulnerable by the recent housing slump and credit crunch, causing potential customers to tighten their purse strings and making it more difficult for small businesses to obtain loans and credit. Therefore, the question becomes, how do small businesses survive during a down economy—especially when they’ve already cut costs as far as they can go?

Should you be one of these businesses, there are some things you can do to stay afloat during this tumultuous time:

1. Reduce your prices. 

Because people have less disposable income during tough economic times, they are less likely to buy nonessential items. Therefore, should you want your small business to survive, you may have to cut your prices. As stated above, because a small business does not have a lot of expendable capital, lowering prices may be difficult. However, if cutting prices will cause customers to maintain their shopping habits with your business, cutting prices is a good idea as long as you still maintain a profit.

2. Invest in a web presence. 

In a down economy, one of the best marketing tactics is to invest in your website. More customers are moving online to find the products and services they are looking for. Small businesses that can’t be found online or through local searches are missing out on potential business. Getting your own web presence is also very easy. Many companies even offer website hosting packages that cost under $5.00 per month.

3. Ask for help. 

When money is tight, it makes financial sense to enlist a professional’s help to build a great website and assist you with website marketing. businessrelatedarticle.blogspot.com offers services exclusively to small businesses and as such is good choice for such things without breaking the bank.

Article From: MoonGear.com

Read Also: Small Business Maximize Flexibility

For small businesses, it’s a thin line between success and failure. Flexibility is key.

This ability to respond swiftly often gives small businesses a desirable advantage over their much-larger competitors because they can adapt to take advantage of growing opportunities and changes in their particular industries.

The reality is, owners must constantly look to evolve, says Steven Rogers, professor of entrepreneurship at Northwestern University’s Kellogg School of Management. The business they’re in today may not be the business they’re in tomorrow.

Looking ahead and adapting also includes costs and competition. So, how can small businesses stay nimble in the face of these challenges? Here are three can-do items to add to your small-business flexibility list:

1. Look for a niche. 

Small businesses often can spot and react more quickly to market trends. If you don’t already have something in mind, the U.S. Small Business Administration suggests conducting a market survey with current and/or potential customers to uncover untapped needs. Look for areas that are being ignored by your competitors. Maybe it’s a certain feature in a product or a tool aimed at a small but passionate audience.

2. Find technology that fits multiple needs. 

Larger businesses may have receptionists, IT departments and contractors, but for small businesses, implementing technology that has a big-business look and functionality without the cost is a must. For instance, changing the phone system to a virtual phone system can trim expenses because it’s designed for start-ups and small-sized businesses. It involves a quick and simple set-up.

3. Cultivate communication within. 

Successful small business owners must master operations, sales, customer service, marketing, human resources and accounting. They must also maintain accurate accounting books in order to maximize tax liabilities.

A receipt-scanning program like Shoeboxed helps quickly document and track tax-deducible expenses including:

– Travel expenses such as costs of plane tickets, taxis, lodging, meals and automobiles. Automobile costs can be tracked by multiplying mileage by the standard mileage rate or by claiming the business-related expenses for the vehicle. Standard mileage rates cannot be included on Forms 1065, 1120S and 1120. Mileage logs should include odometer readings, total miles driven, percent of mileage used for business, destination and purpose of the trip.

– Expenses for advertising, promotions, interest on borrowed money and bank fees.

– Legal and professional fees in the year incurred. If consultation relates to future years, the fees must be deducted over the life of the benefit.

– Miscellaneous expenses such as bad debts (goods sold, not services), customer gifts, business-related books, postage, seminars and trade shows and business association dues.

If job descriptions, time sheets and W-2s are on file, unincorporated small family businesses employing their children can enjoy several tax benefits:

– No Social Security or Medicare taxes are due. State unemployment and disability taxes are typically waived.

– Child labor restrictions generally do not apply.

– If children are paid less than the standard deduction, earned income is not taxed.

– Owners can use their children’s earned income to open Roth IRAs. Earnings are non-taxable, and withdrawals for college-related expenses or a down payment for first-time homeowners can be made without penalty.

Tax software can be used throughout the year to help owners understand how financial decisions affect their tax situations. By organizing early, owners can maximize deductions and save time when it’s time to submit their tax returns. Customers who pre-order TaxACT Preparer’s Business software can use preview versions as soon as they’re released in October. Final versions of TaxACT Preparer’s Business 1065, 1120 and 1120S are released in January.

Tax information for small businesses is available at www.IRS.gov, and TaxACT information can be found at www.TaxACT.com.

With regards to technology, small businesses and entrepreneurs working out of a home office used to be at a competitive disadvantage. But the abundance of productivity tools and online resources for small business has changed all that. Being small doesn’t have to look small — now you can run your business from beaches and terraces of the world with just a cell phone or a tablet.

Now, smartphones are practically office computers in and of themselves, allowing you to stay connected 33,000 feet up in the air or stuck in gridlocked traffic. Not surprisingly, a Small Business Technology Poll taken by AT&T reports a steady increase in the use of tablets, 4G devices and mobile apps for business purposes. The next step for the 85 percent of small businesses using smartphones is utilizing the variety of tools available online.

Here are three inexpensive resources offered online that help small businesses and the one-person team working from home — and your business shouldn’t be without them.

1. Virtual phone system.

This system allows companies of all sizes to have a business-class virtual phone system designed to help small and home-based business owners build the same strong, professional image as larger competitors. It comes with toll-free numbers, Internet fax, voice mailboxes and more.

2. Payroll software.

Depending on the size of your business, it may not be pragmatic to have a full-time accountant, and outsourcing can be pricey. But payroll software can be optimized for all payment methods, and accuracy is based on a money-back guarantee. Software of this nature tends to be very user-friendly and extremely secure.

3. Email marketing software.

Social media marketing is all the rage right now, but according to SmallBizTechnology.com, email marketing software remains more effective. An email marketing software tool will track who opens, reads and forwards your emails, design more targeted newsletters, increase referrals and get quicker results.

One last word of advice, which may be the most crucial of all: Type TestThis4Free.com into your browser and bookmark it. The website is a one-stop shop for online productivity tools, including virtual phone systems, payroll software, email marketing software and more.

The best part? It offers free trials of various software and services to make sure users will use and benefit from a tool before buying it.
With these tools offered for free online, small businesses actually stand a chance against large companies and big budgets.