Working Solo Minute: Navigating an Uncertain Economy

Let the economists and financial pundits argue about whether we're officially in a "recession" or not. What matters to soloists is how to stay afloat when times get tough. Here are my thoughts:

1. We've been here before.
While business and economic patterns may not be totally predictable, they are cyclical. There will be better days ahead; the challenge is to maintain an even keel and sustain yourself and your business until things turn.

2. Prepare for tight credit.
The particular twist we're seeing in the current economy -- the "perfect storm" of the mortgage crisis, rising gasoline and food prices, a faltering US dollar -- means that banks are scrutinizing lenders very closely (at least here in the US). If you intend to borrow money for your company within the next six months, make sure your credit is strong. One positive note: interest rates have dropped, thanks to action by bankers at the Fed.

3. Avoid the cave.
If you're feeling a pinch, now is not the moment to hide. Yes, review expenses and cut where necessary -- but not on marketing. This is the time to redouble efforts to find new customers and clients, and to turn current ones into loyal buyers of your goods or services.

4. Shine bright.
On cloudy nights the brightest stars still shine through. In tough times competitors often fall away. Now is the time to set yourself apart from the crowd. As Working Solo colleague Ann Ulrich says, "Be BOLD!"

-- Terri Lonier
Founder, WorkingSolo.com

P.S. I'm delighted to announce that Clay Shirky, author of the terrific new book, Here Comes Everybody: The Power of Organizing Without Organizations, will be my guest on a free Working Solo Teleforum on Friday, May 16th, at noon ET. Details next week -- in the meantime, check out Clay's book blog.

Working Solo Minute is published each Wednesday by Working Solo, Inc. and is based on the work of author and small business expert Terri Lonier. Copyright 1994-2008. All rights reserved.
Working Solo is a registered trademark of Working Solo, Inc.

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