The present times are testing times for every one. With the oil and other commodities prices at their peak (or near peak), the inflation raising its ugly head, the world financial markets in turmoil, every one of us is really worried these days.

If the worries are more for the employed, for those in business, particularly in small business, the worries are much more.

How to weather the present turbulent times?

I was trying to find what kind of magic would work for small businesses these days.  I was getting a hazy picture of the whole situation as to how to insure the very existence of these small businesses. The picture presented some basic fundamentals of any business.

They are

Dont over trade

The small businesses should not indulge in over trading. Some times the markets may appear to be very inviting and the small businesses should be very careful. They should not indulge in over trading at all costs.

Manage within your capital

Our small businesses should ensure that they stay within their limits  not to resort to borrowing by leveraging on their capital to take momentary advantages in the markets. When one does not indulge in leveraging, immediate threats are managed.

Reduce your borrowings

With the markets feeling the pinch of the credit squeeze, any borrowing will attract higher interest rates. Such higher interest rates would eat into what ever margin one would be earning in their businesses. To retain such reduced margin in these markets, it would be ideal to reduce ones borrowings in the first place.

Focus on yours customers

Well. We are all aware customer is the king. When times are not good for every one, if one can focus on the customers and make him/her satisfied on all counts, we would ensure their continued loyalty when the markets turn positive.

Quality is mantra

Our small businesses are well advised to ensure that they do not cut corners to make higher margins. If they indulge in, they would lose their customers, markets and the businesses. Therefore, at all costs, they should deliver quality goods / services

Retain key resources

Every business has key resources employed in the business. When times are not so good, tempers might run very high on any issue and the small businesses should be extra careful in dealing with their key resources. Engage them in healthy dialogues; take them into confidence; assure them every thing would be alright when the markets turn positive for them.

Make both ends meet and be happy

Our small businesses should thank their stars and be extremely happy if they could make their both ends meet. This itself a big gift for their businesses in these testing times. One should be not greedy. We know very well what greed has brought even to the mightiest these days.

Well. When one has stayed thus during these stormy days, better days will come very soon. And surely their wait wont be long wait. They can make money very soon.

I believe our small businesses will take these words seriously and would just wait and watch for better days.