Reduce Wasteful Spending During a recession, it is vital for small businesses to reduce spending. The cost of inventory and raw materials should be analyzed to determine whether more cost-effective alternatives are available. Staff duties and responsibilities need to be looked at to identify whether job cuts are an option. Day-to-day costs such as leases, utilities and office expenses should be scrutinized. If a small business is going to survive a recession, all wasteful spending must be eliminated. Enhance Customer Service A small business must ensure that it is providing top-notch customer service, especially during a recession. Providing excellent customer service is the easiest way to keep current customers and clients. It is much more expensive to find new clients than it is to keep existing clients. Small businesses should evaluate each step in the customer service experience and ensure that customers receive the proper attention. Management should look at every aspect of a customer's contact with the company and make sure the customer's needs are met in a courteous, friendly and timely manner. Align Pricing to Current Market Conditions During a recession, small businesses might need to reduce their prices in order to keep current customers and to attract new ones. A small business must analyze the current market conditions to ensure that its prices are in line with competition. All companies search for value during a recession, and if a small business provides great products and services at fair prices, it will survive or even thrive during a recession. Use Cost-Effective Marketing A small company has many more outlets these days to market products or services. Consider using social media sites such as Facebook, MySpace and Twitter. These sites are free to use and give you the ability to reach new customers and keep in touch with existing customers. Send out promotional emails to entice your customers to make additional purchases. Most people are happy to receive an email from a company they know that includes a deal or a discount. Be sure to use email marketing wisely. Don't send too many emails to your customers. You can also provide a discount for a future purchase when a customer makes a purchase. There are a lot of other creative and cheap marketing possibilities available to small businesses.