Making the Sale

No one has to tell a small business owner that right now is not the best of times. A recent survey conducted for Employers Holdings Inc., a Reno, Nev.-based workers' compensation insurance company finds that 65% of the small business decision makers who responded said worries about their business are keeping them awake at night.They worry most about the economy, growing and maintaining their business, meeting operating expenses and their business closing.Over 70% expect their revenues to stagnate or decline this year while eight in 10 expect to cut costs in some way and 42% expect to eliminate or cut back expenses.But the results of a survey of consumers conducted for Ad-ology Research, Westerville, Ohio, may contribute more to small business owners' sleepless nights.Just fewer than half the respondents believe that a lack of advertising by a retail store, bank or auto dealership during a recession is an indication that the business must be struggling. On the other hand a vast majority perceive businesses that continue to advertise as being competitive or committed to doing business."It is critical to advertise in the current economic climate, to maintain long-term positive consumer perception of your brand. Advertising not only assures consumers of a business' reliability in a soft economy, but it can influence where and what they buy, especially when the ads address concerns about value," said C. Lee Smith, president and chief executive.Meanwhile, a business performance expert said that businesses of all sizes, instead of hunkering down, preserving resources and cutting back, must innovate their way to long-term success, as did a number of firms during the Great Depression.Linda Henman, president of Henman Performance Group, St. Louis, suggested small and large business concentrate on the same things - the evolving market, new ways to help their customers, investment in themselves, more visibility, and added value.She recommended finding ways for customers to work with you more easily.This is the time for innovation, not adherence to the status quo - particularly if that involves sunk costs. "Just because you've always done a certain thing and have perhaps spent an inordinate amount of money on it doesn't mean it's still the right thing to do. Throwing good money after bad never makes sense-makes even less now. Ask yourself, 'If this weren't the status quo, would we still do it?'" Ms. Henman asked.