Can Small Businesses Survive in Today's Economy?

Business and economic news is the worst in decades. The cliché, of course, is: The bigger they are, the harder they fall. And sometimes - the faster they fall. Consider Countrywide Financial, Fannie Mae, Freddie Mac, Washington Mutual and Wachovia. And don't forget others from the past. Other large financial companies are in jeopardy and even more, deep-pocketed multinationals are feeling the heat.

But what about the little guy? What about Small Business? How can the corner store owner survive the next few years?

Get back to basics. Old values like quality, customer satisfaction, worker morale, and loyalty to reliable suppliers might pay off more than the newest management fads or "thinking outside the box".

Many small businesses borrow money to pay their employees. Once the income from sales is received, those companies pay back their loan they got from the bank. Can that same business and financial model be operative in today’s economy?

Here is the best thing to do. If you can, by all means avoid debt and proceed with caution. Maintain a strong balance sheet. With asset values still in flux, assume that credit needed to take advantage of the many investment opportunities out there will be both more expensive and harder to come by.