Business Strategies for Tough Times

Running a small business is difficult enough in the best of times. Finding a market and turning a profit takes smarts, savvy, luck – and hard work. But when the economy starts to founder, small business owners must prove that they're fit for survival and their business concepts are sound.

"A good economy hides bad businesses; a bad economy reveals them," said Rafael Cruz, an analyst with Florida Atlantic University's Small Business Development Center. "The whole point of being an entrepreneur is making the best of whatever situation you're in." Large companies may have the cash and momentum to survive a downturn, but small businesses can't count on such protection. "The reality is if you're small, you're more vulnerable," said Cruz. Even some big companies are finding it tough these days. "Size is not necessarily a savior," said Alan Carsrud, executive director of Florida Inter-national University's Eugenio Pino and Family Global Entrepreneurship Center. "We've seen plenty of large companies fail in this economy." Indeed, Carsrud suggested small businesses might have an advantage. "Small businesses can move to adapt to their local environments," said Carsrud. "If they are flexible enough, they can survive." To better understand how small businesses are faring in these tough economic times, The Miami Herald looked at five local companies with distinct strategies for surviving, and even thriving. "Anyone can make money in a good time," Carsrud said. "If you can make money – or even hold on – in a bad time, you've got your act together."

Source: Copyright © 2008, The Miami Herald. Distributed by McClatchy-Tribune Information Services.