Given recent developments, I would remiss if I didn’t lay down my thoughts on the current state of the economy. There is enough blame to go around, no matter where you fall within the political spectrum. The very real credit market connection between Wall Street and Main Street will affect Small to Medium Enterprises (SMEs). But the things we need to concentrate on, as owners of businesses and members of the middle class, are what we can control–not on rending our garments and gnashing our teeth about the things we cannot.

There are  very real factors that can weigh in on what we can and cannot control–most of which are subjects for other posts on other blogs. Socioeconomic, education, and social-justice issues are just a few. However, when we go back to basics and follow simple principles they usually don’t let us down.

Keep costs down. Renegotiate with your vendors. They might be going through tough times too, but one thing you can count on is that they don’t want to lose your business. Save when you can: Having cash on hand during a credit crisis for home or business will make it easier to pay for the things you need going forward.

Invest in your employees. Numerous studies have proven that it is always more expensive to hire a replacement for an employee than it is to invest in the good ones you have. In the end, the ROI will be increased productivity, increased loyalty, and happier customers. Do right by your customers. We’re all feeling the squeeze, but I would wager that even the squeezed-iest among us would still rather pay a little more for a great product at a fair price that comes with great service than a mediocre product at a cheap price that comes with terrible service. Any joker can lower his price; don’t fall into that trap.

Invest wisely in a marketing plan that has a proven track record for you. Maybe that means going after loyal customers with a call to action that will encourage them to spend more or seeking out new customers that you can wow and retain for the long haul. 

When it comes to facing down the downturn, getting back to basics is all about what you can control.

How are you handling the economic crisis? Or, in the words of the new contest that PFL recently announced, “What recession-busting marketing tactics will you use to ensure your business comes out on top?” Share your ideas in comments, or enter the contest.