Let me start by saying congratulations! Congrats to those of you whose business is still managing to stay in the air, despite the turbulence. Congrats to those of you who have managed to hang-on to your jobs, or have found a new one, and remain gainfully employed. I am not sure the current downturn is over, but if you have made it this far then you must be doing something right, and chances are you will weather the storm!

I would not get too excited, but the data, and the rhetoric, indicates that we are at or near the bottom. That is a great sign. Core retail sales are doing slightly better, the housing market is trying to show signs of life, and there is some hope that all of the actions taken by our government over the last year will start to have a positive impact on economic growth. Although I believe we still have a little ways to go before the job market begins to rebound, all indications are that this recession is beginning to run out of gas.

The real question is what does that mean, should we expect a “V” bounce, or an “L?” I think it is probably unrealistic to expect your business to suddenly rebound to where it was prior to the downturn. It took some time to get to that level, it will take some time to get back there. There may be an initial bounce when all of the government’s spending efforts begin to take hold, but I would expect that to level out. It is going to be a long road back, but if you made it this far you have likely structured your business to weather the storm, the hard part of the battle is over! 

At this point we can’t get away from it. Business owners all over are feeling the pinch of a difficult economic environment. Gross Domestic Product in the fourth quarter of last year fell 6.2%. Unemployment continues to rise, consumers hold on to their cash, and the economy remains trapped in a vicious cycle. How long it will last is anyone’s guess, some say months, some say years. Here are five suggestions that may help you deal with the challenge.

1) Nail down revenue projections – We are two months into the year, at this point you should have a clue as to how your business is tracking versus prior years. You need to structure your business for the new reality. Stay on top of the cost structure of your business, and make sure it fits your current revenue stream. Find creative ways to keep your team together, and lower your cost.

2) Keep your eyes on cash – Combining tight expense control with a clear understanding of current cash needs will help you manage through the crisis. If possible try to keep from dipping into your line-of-credit or other sources of capital until absolutely necessary. Your best bet may be to hold those back for a rainy day.

3) Cement customer relationships – Now is the time to double down and work harder cementing those valuable customer relationships. Many of your customers may have no money to spend right now, but you should still focus on keeping them as customers. Paying attention today will pay dividends in the future.

4) Look for opportunities – Some businesses will not weather the storm. This will present opportunities for those that can weather the storm. Now is a time you may find great deals on used equipment or other assets. Keep your eyes open for any opportunities you may be able to take advantage of.

5) Invest so you can sleep – If you have cash invested in securities or bonds, make sure your portfolio is structured in a way that allows you to sleep at night. Your major challenge right now is navigating your business through this crisis. The last thing you need is to spend your nights pacing your bedroom worrying about your 401k!

As we go through this inflection point keep in mind, nothing lasts forever. Our economy goes through periods of growth and periods of contraction. These periods always end, just as this one will some day. Focus on steering your company through this downturn, and you will be positioned for the next period of growth!