"President Bush said today that it is our job to vote. That's what he called it, a job. And considering how the way economy is going, that may be the only job we have." —Jay Leno

How do you define recession? Wikipedia defines it as the significant decline in economic activity spread across the economy. It lasts more than a few months. It is normally visible in real Gross Domestic Product, real income, employment, industrial production, and wholesale-retail sales.

I compiled the list of things you have to consider to protect yourself and your business in the sluggish economy.

Add an extra touch to your product.

Your product is the reflection of you. As much as possible maintain a good rapport with your client-base. Customer-service is the life-blood of the business. A good customer service is a good word of mouth campaign for your business. They will keep on coming back as long as you maintain this good customer relationship. Increasing the price would not do you good. As much as possible keep your prices in control.

 Promote your business in an inexpensive way.

This is the age of the internet. The world-wide web reaches billions of people world-wide. There are a lot of tools or medium already available to you to advertise your business for free. One such site is catered to Filipinos living in Arizona. That website is www.OKAYTO.net. They have a directory listing of Filipino-American owned businesses in the valley. 

Spend time to build your network.

Reach out to your network. Take the time to know and meet the business people in your area. I personally encourage you to join the Filipino-American Business Chamber of Commerce of Arizona to expand your network. You can download a form at www.FABCCAZ.com for details. Knowing that you are a Fil-Am with a business not only helps the economy, it also promotes our solidarity as Filipinos and confirms our presence in valley.  

Rethink your business expenses.

Make every dollar spent to support your business or marketing it to your potential customers. It is probably time to cutback on those long business trips for nothing. Evaluate every cent that you spend and make sure that your invested penny returns more than 3 folds. This is the time to be a smart spender. I myself have cutback on my early morning Starbucks coffee. I was astonished to see that I saved $300 in a month from just drinking the coffee made at home.

Focus on your objective.

Never lose sight of your goal. Now maybe is the time to peruse your Mission Statement. In times of economic slump, business owners lose focus and try to find other ways to generate more income. You have an existing business. If you already have a proven and good business model then concentrate on enhancing that and stop trying out new things. Everything is based on timing. When things get better, take a stab on what you want to try.

Set-up an Emergency Fund.

You do not know when it is going to start, or how long it is going to last. It is safe to say that you should have at least 3 to 6 times of your month’s salary saved in the bank. Use this pool if necessary and replenish it as early as possible.

The credit card is not your Emergency Fund! Using them only makes matters worse.  In fact, you need to reduce your credit card charges. Keep the charges at the minimum. An excellent way to survive the slump is to take very good care of your credit history. There is a rampant occurrence of credit card fraud during this time and there is no better way to prevent fraud other than closely monitoring it. A good site that I bumped into to get this monitoring service and get my free credit report is www.EZCASH-R.Us

Parting words.

It is up to you to be ready for the recession. Tighten your belt and keep your ears to the ground. You have to always plan ahead of time. Think twice before you spend that dollar. Recession is never announced upfront. It always admitted when it is over. Listen carefully to how our political leaders talk and how they shift their focus. Be wary of the price of dairies and gas. These are good indicators.

“Be Safe and Prosper!” - Aremmai