- Starting a small business is hard work. In a tough economy, it can be even harder. This is partly because when credit markets are tight, it can be tough to get startup financing. That's why it's crucial for small business owners to hone their business plans. In other words, if you want a slice of the financing pie, you had better work your cash projections really hard and know your bottom line down to the penny - how much money you need to put into the business, how much you will need to charge to meet your operating costs and, hopefully, what you need to do to realize a profit. If you're thinking about making the leap into entrepreneurship, consider the following tips to successfully build your business in a difficult economy.

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No.1: Finding pennies to finance your business

▪ a friend who owns his or her own business▪ a loan officer at the bank where you do business▪ an accountant (ask for an estimate - preferably a flat-

rate fee - for reviewing your plan)

Before applying for a person loan, ask trusted friends or professional advisors to review your plan to make sure you're not overlooking anything critical or making inaccurate assumptions. You could ask:

The best way to borrow… is not at all…

- In addition to securing small funding for your new home-base enterprise, come up with a financial back-up plan both for your business and your personal finances if you fail to hit your initial revenue projections. You should also build up your own personal cash reserves so that you have enough to live off of for six to 12 months, and collect peanuts (loose change) carefully to make sure you can continue making your most crucial payments (i.e. rent/mortgage, insurance premiums, mobile phone, etc.). Finally, check your gut - and your bank balance - to make sure you're ready to start your new home-base business.

Brain Storm and Boot Strap

No. 2: Market Smartly

Starting a new business when the economy is on the downturn takes creativity and ingenuity. Marketing is vital in getting ahead of the game - and your competitors. Take your plan and really flesh out the marketing components. What exactly are you going to sell, who are your targeted customers, how will you price your rate or services, and what is your plan for promoting your business?

You stand a better chance of succeeding by thinking niche. Slice and dice your original mobile phone and social media base to come up with smaller segment to market more strategically. For example, if you offer a professional service geared toward women, could you narrow it to target women within a specific age range, career type or geographic location? Find your Niche Market

Facts Sell, Stories Tell

No. 2: Market Smartly

- Or, alternatively, think about ways to alter your rates or services to broaden your businesses' appeal and customer base. For example, if you have invested in opening a “ hospitality and travel “home-based business, could you also offer event packages or ride sharing for customers who want “click and go"?

Cont.

- Remember to keep a close eye on the competition. Do ongoing competitive analysis and watch what other providers are doing and what marketing techniques they're using to build their business. Are they tweaking the rates? Lowering the price? Using creative promotional tactics? You'll need to know where your competitors are so you can differentiate yourself and gain market share. For example, think about where your competitors aren't operating or which potential customers they're missing - then be the first to capture that segment of your market. (To find out how to attract new clients, read Generational

No. 2: Market Smartly

No. 3: Start Small … With an Eye to Expand

Start Small

▪ Manage your expectations and your expenses by starting as small as possible, with an eye to expand when business takes off. Review your plan and reconsider what you need to start. For example, could you start in a smaller - and less expensive - location, or stay "virtual" and eschew a physical office completely?

With an Eye to Expand

▪ After deciding upon the best, most affordable space for your business, think about your staffing needs. Before hiring full-time employees think about filling needed positions with contractors, temporary workers or part-time staff. If you're opening a business in an area that has seen local businesses fold, you may be able to pick up some great talent for less compensation than in an "up" market.

No. 4: Use Technology to Your Advantage 

Technology can provide you with numerous ways to save money and increase profits. For example:

Expand your market by selling through multiple online channels. Do email marketing instead of more expensive electronic or print advertising.Use websites like Entrepreneur.com, Score.com, BusinessInfoGuide.com or bizSugar.com to get ideas from fellow entrepreneurs and successful business leaders.Optimize your website for search engines to keep your site coming up at the top of your customers' searches.Produce affordable marketing vehicles like podcasts or webinars through your website.Create an online customer loyalty program offering advanced notices of sales, discounts, referral bonuses and coupons.

No. 5: Network, Network, Network

Get to know other people in your community who can refer customers and help build your business. Don't know where to start? Find a local business networking group (meetup.com) or contact your chamber of commerce. Look into joining a professional association - either a local one where you can meet people in person or even an online group - to tap into others' ideas. (LinkedIn.com)

No. 6: Ideas for Lowering Costs 

Using the economic situation as leverage when negotiating rents, equipment leasing agreements, etc. Leasers, developers, and vendors need businesses to pay their rent and fulfill their contracts. You may be able to get a lower price if you can demonstrate an ability to pay on time and in full at the lower rate.

Buying supplies from businesses that are closing or need to reduce inventory, particularly for big-ticket items like electronics, office furniture, etc.

Bartering with other business owners. Look for business alliance possibilities and suggest offsetting costs by trading products or services.Doing your own legal homework. Before shelling out big money to a lawyer for business startup costs like incorporating or obtaining a trademark, use online sources like Findlaw.com or Legalzoom.com, which provide free resources and low-cost services.

A gloomy economy can actually disguise some great ways to save money. Creative ideas to lower your start-up costs include:

Conclusion : “In Business for Yourself but not by Yourself”

- There are unique benefits and opportunities to starting a business in a tough economy. If you do your homework, think strategically and take advantage of every opportunity to minimize costs while maximizing the value you add for customers, you can build a foundation for long-lasting business success.