Businesses get pointers on surviving the downturn

Small-business owners across central Virginia are dealing with some of the toughest economic times in decades. Despite that environment, many small businesses remain healthy.

"The news is not all bad. There are plenty of businesses that are doing well in this market because they are solid and making the right decisions," said Nancy Thomas, president of the Retail Merchants Association.

For those companies that aren't doing well -- or aren't sure what to do to get stronger -- some organizations are offering advice.

The merchants' association has dedicated several of its monthly Friday breakfast meetings to subjects such as how to make the most of marketing budgets and how to get more from balance sheets.

Here are some tips -- for cutting costs and strengthening the bottom line -- that area financial specialists gave at a recent meeting.

Renegotiate your lease: After labor, rent is the highest expenditure for small-business owners. Ask landlords if you can get rent reduced by offering to sign on for a longer term, take less space or sublease unused space.

Cut office and store costs: While it could be difficult to increase sales in this environment, there are expenses that can be trimmed or eliminated to make up shortfalls. Those expenses include overnight services, printer and copier ink cartridges, office supplies and credit-card fees.

Work with creditors: You can't cut out your banks or your vendors, but you can find ways to trim costs. Negotiate with them by asking for better terms or volume discounts, get lines of credit from two banks, consider borrowing from the cash-surrender value of a life-insurance policy or join a barter network.

The retail trade group also has partnered with Richmond SCORE for a series of workshops on what businesses can do, including advice on identifying legal risks during a recession, making turnaround plans and increasing profits.

SCORE also is working with the Virginia Asian Chamber of Commerce to offer classes for new businesses.

Many other groups, including the Petersburg Chamber of Commerce and the Charlottesville Business Innovation Council, are holding meetings and workshops to assist companies.

In other words, there is help available for business owners, new or otherwise.

Contact Louis Llovio at (804) 649-6348 or .