In the midst of this economic recession, it is very tempting to look for a quick answer to the problem. Naturally, we want this economic recession to end, but this is easier said than done. As a small business owner, this can be frustrating, as businesses are currently feeling customers not spending money. The best thing for you to have is patience – there is nothing that can be done about it – do your best to keep your business afloat. Here is some advice that can help you keep your business afloat in a recession. Ads are the best way to promote your business. During a recession, this is not practical, as the budget is much tighter than before. Instead of cutting your staff to fund advertising, the best thing to do is to retrain your staff in improving customer service, as well as conduct thorough product training. This is key, as there are not enough funds in your business for advertising; however, if you have a staff that is knowledgeable and friendly, this will prove effective, and the potential for word-of-mouth advertising, which will be at no cost to you, will be done by customers. Business owners should cut down profit margins until they are able to raise them again. In cutting what you take in relation to profit margins, you are giving customers the advantage of having lower prices – a more comfortable environment to spend money. By holding sales, this will encourage consumer loyalty in your business. A mistake businesses make is shutting down alternate locations to save money, or cut back on costs of equipment which can make the business more efficient. Instead, a recession is the perfect time to do this. Prices are generally lower for equipment, in an effort to stimulate business. By keeping and even expanding your business as it is, you may be able to gain a bigger market share, spreading yourself out and making your business more visible. If you shut everything down and stick to one location, you will stay in one place. There may be a glimmer of hope in this respect, as UK Business Secretary Lord Mandelson has announced that the government will continue to aid small business as much as they can through the "Real Help Programme"(RHP). Although many small businesses feel they have been shorted by the RHP, it has come to the aid of 2500 small businesses in the form of loans, in order to help them stay open. More on this can be found at http://www.tworkshb.com Although it may seem that banks are not willing to give you a loan, this is not necessarily true. Thanks to the the government's UK bank bailout, banks have confidence in granting you a loan. By simply explaining the various steps you are taking to cope with the recession, a lender will consider it, after reviewing past and current financial records. If your business has a decent credit rating, it should be no problem. In fact, http://www.the-crunch.com, a popular UK recession blog, has reported that the UK Council of Mortgage Lenders(CML) reported a 16% increase since February of this year -- this should show that even during a recession, banks are still willing to lend money, as they are looking to keep their doors open as well. Overall though, the CML does not find itself in the position to declare that this will have a favorable effect on the UK economy. You may need to lay off some employees if cutting spending has not worked. While this is a horrible decision for most of us, it may be necessary. Simply tell those you have to let go that they are welcome back; and, only let go of the employees that are easily replaceable, in case the former ones don't return. If you do not have one already, build a website and promote your products or services online. This will expose your business to a wide array of customers in other towns and countries. A simple website can be built at little or no cost fairly easily. Ask for advice from other business owners as to what they are doing to cope with the adverse effects of the recession. By doing so, you may discover just the tip you need to stay above water, and this will prove to be a life saver -- especially if you consult an established owner. By carefully assessing your situation, you can easy implement all of these ideas as long as they are budget-friendly. Don't throw in the towel and give up – after all, you put your heart and soul into your business – it would be unfortunate to give it up now.