By Bob Feeman | MainStreet.com

Running a company during a recession can pose major challenges to their owners. But it also offers them an opportunity to revamp their businesses and find new avenues for success.

Here are six strategies for small-business owners who are struggling to survive in a weak economy:

Exercise your bargaining power: Recessions can take a toll on a company’s cash flow. If you’re having difficulty paying your suppliers, work with your vendors to create a payment plan that’s more manageable. You might be able to use the economic crisis as a bargaining chip to renegotiate your contracts and get better terms.

You should also look for ways to reduce inventory to keep overhead costs down. And be sure to bill customers right away, which can help speed payments and keep cash flowing.

Focus on the profit-makers: When the economy is flying, it’s easy to get sidetracked by adding ancillary products or services that might broaden your company’s appeal but water down profits. Take a critical look at everything your business offers and concentrate on the efforts that will bring in the most cash. Weed out time- and labor-intensive services that are less profitable.

Explore the art of the deal: Customers still spend during recessions, but they’re more cautious and sensitive to bargains. If you provide services, consider bundling some together under a lower price. Try offering reduced prices for groups. Look for underserved customers and lure them with discounts. Special prices might hurt in the short term, but attracting new clients will help you generate revenue after the economy rebounds.

Improve customer service: It’s important to retain the customers you have. Show them your appreciation through discounts, special events and gifts. Take the time to talk to them. Provide them inside information about your products and services. If you do it right, they’ll remember you after the economy improves.

Evaluate your rivals: A recession can become an opportunity to attract clients from your competitors. Try offering services that help you stand out in the field, such as free delivery or package deals.

Adapt and get creative: Revisit your original business plan and ask yourself if your vision is still viable in this economy. If it’s not, look for ways to adapt by tapping into new markets or targeting other groups of customers. Consider taking a new marketing approach or changing the packaging of your products. Minor tweaks can create major improvements.

How will your geographical location play a role in your lifetime earning ability?

Richard Florida is a researcher and author of best-selling books such as “Rise of the Creative Class”, “Flight of the Creative Class” and most recently, “Who’s Your City?”.

You might be familiar with his concept that places that show the greatest economic and cultural growth share three social features: talent, tolerance, and technology. A familiar example is that cities that welcome maligned groups and encourage the arts tend to have the most expressive and robust economies. Reviewing articles about Florida’s latest book, “Who’s Your City”, it appears Florida goes a step further when it comes to finding the best geographic places to live and work.

I haven’t read the book yet but it appears that Florida maintains a specific prediction about the future. His prediction based on research? In order for individual cities (and the people in them) to compete in the coming years they’ll need to join forces, quite literally, with their economic neighbors. Regionalism will grow in importance. Large industrial cities and smaller ones will need to merge into regions that can compete globally. This, in turn, makes transportation such as fast rail or other public transportation between cities and towns even more critical.

Above is his map of the “spiky” world he describes. I look forward to reading more!

At 11am EST we’ll feature reporting from WomenCo.com about the top 25 American cities with the best forecasted economic growth. If you’re considering a move, check out this list.

I bet that if you ask around, jobs are one of the biggest things on people’s minds today. How to get a job, how to keep their job, getting promotions, getting paid enough…all these things are constantly on people’s minds and can be very stressful for many. Although it is almost expected that during such tough economic times with unemployment on the rise you are going to worry about job security, there are definitely things that you can do to help yourself along (and keep your job).

1.) Don’t Be Selfish – Although it may seem like the right thing to do to solely focus on yourself and your involvement within the company, this may be a completely downfall for you. Instead of focus on yourself, focus on the team. Many companies revolve around a team environment and it is important to work together to achieve the task correctly and efficiently. Without team work the whole company would not function properly. This is not the case with all companies, but today it appears as though most companies like individuals to work together instead of separately. Showing that you are a strong and reliable team leader is extremely important.

2.) Don’t Stress About Promotions – If you think about getting a promotion it will never come (it’s like the saying “a watched pot never boils”). The second you stop over thinking a promotion or worrying about when it is going to happen, it will happen. However, with the current economy, many companies are on hiring, promotion, and merit freezes meaning that you should try to excel as much as possible and hope that when the freeze lifts you will be the first one promoted!

3.) Continued Learning – Continue learning is extremely important within any company. Companies like when their employees take it into their own hands with new tasks and learning new programs or materials that will help them with their everyday routines and job. Many companies may even pay for you to take a class or offer the classes at the company office. Ask to see if there are any classes that you can take at the company that will help you further your education. Microsoft Excel is one of the biggest areas that employees are always finding that they can learn more about. This may even mean checking out a book at the library that will fill you in on new things you can do in Excel that you can share with others at work.

4.) Search Out Important Tasks/Projects – Making sure you are involved in as many tasks and projects as possible is always important. You do not want to overdo it however and how too much work that you cannot accomplish it. However, make sure that you are always getting involved in what is going on. If a project is really connected to the company and important, you want to show that you care and can be a big help. Also, if you are connected to an important ongoing project, you are less likely to be ‘let go’ if you are one of the only people that knows what is going on with the project.

There are many other things that you can do to keep your job a little bit more secure, but these four ideas are definitely a good starting point. Just remember that everyone around you is going to be trying to keep their jobs just as much as you. Find your strengths and run with it, you may be surprised by how far it gets you. If you do find yourself in a situation without a secure job, here are a few ways to make money even if you don’t have a job!

Photo By: Emily

Lately everything you hear about on the news, radio, or just in public is people talking about money and the economy. With money being such a hot topic, it makes sense to teach your kids about the value of money as early on as possible. In the future, your children will appreciate the knowledge you gave them early on.

Helps them Understand that Money Does Not Grow on Trees – When children are young, they do not yet understand that you have to pay for everything and that money doesn’t come for free but instead you have to work for it. Teaching your children these simple things can help them learn that money is not that easy to obtain, you really have to work for it.

Prepares them for the Future – Some banks offer special offers for children to open savings accounts with them. For instance, during the summer certain banks were offering $10 to go into a savings account for a child to read a book and write a short summary on it. This is a great way to (1) get your child to read during the summer and (2) get them excited about having $10 of their own. You can also offer your own small rewards for your children to encourage them to put money into their savings account.

Makes them Feel More “Grown Up” – Along with having their own bank accounts, having their own money and knowing what they may want to save for allows your children to feel much more “grown up” than they would if they were just given everything by you. Make sure that you are allowing your child to not only save their money but spend some as well. Without having both, your children may not get excited about having money if it all has to go into their savings account or piggy bank.

Gives them a Greater Understanding of Responsibility – Whether your children are young and still getting a weekly allowance or if they are in high school and have their own part time jobs, having taught them about money gives them a greater feeling and understanding of responsibility. Having your own money to spend instead of having to count on your parents can be a great feeling for young adults. If they want something, they know that they have to save up for it.

Teaching your children will prepare them for their future and they will appreciate learning from their parents. Learning the small things about the importance of saving can help you a great deal. High schools are starting to offer classes on finance, when you children get to high school age, encourage them to enroll in these classes to give them an even greater understanding of what stands ahead of them.

$6,000 could go a long way toward reducing your debt. Win this or other great prizes in the Great Geezeo Bailout! Collect points every day.

Photo by: Alvimann

Oh, sure — it’s easy to classify yourself as an “Aggressive” investor with a “high tolerance for risk” in the middle of a rising bull market. It is pretty easy to feel like a investment genius. Listen up genius: the market is different now. If you were recently patting yourself on the back for your smart moves you’re probably questioning your brilliance now.

And you’re not alone.

USAToday ran a poll recently that classified people today into four economic types. These types were: Prudent Pessimists, Bad Shape and Suffering, In-Control Realists, and I’m OK, the Economy’s Not. Only one of these types remained largely optimistic about the economy and the future.

How do current effects affect your perception of the market? Has your economic personality shifted from bullish to mouse-ish?

If you’re feeling like the earth is shifting beneath your feet, here’s what you should do:

Educate Yourself. The more you read and learn about personal finance the better you’ll feel about your decision-making. You may indeed be an aggressive investor capable of handling risk. If so, this your testing ground. Read what others have to say about the economy ranging from idealistic hope to possible doomsday scenarios.

Think Before You Move. Even if you’re accustomed to making quick decisions now is a good time to really do your homework and consider your options. Try to remove external media and pressures from your decision-making process.

Stay True to You. No one is going to care more about your money and it’s management than you. Don’t give your financial future over to anyone. Seek the advice of professionals but ultimately make your own decisions. It is your financial future so stay true to your goals and strategy.

Editor’s Note: See also 8 Money Personalities, Which Is You? and our basic guide to Growing Investments.

Geezeo is all about helping people make educated financial decisions, not turning them into misers.  Keeping a budget and focusing on your money doesn’t make you cheap.  Cheap is not the same as thrift or frugality.  Frugal is a way of being that emphasizes getting the most value for your dollar.  Cheap is strictly about spending as little as possible.  The quest to become master of your financial domain is useless if you end up sitting alone on a mountain of cash.  To keep from going there, read these four cheapskate warning signs.

You feel entitled to a discount.  All the time.   
A wise money manager always inquires about deals and does so politely. Cheapsters consistently try to get something for nothing.  The worst offenders actively seek deficiency in a product or service to justify being given a discount. You may notice them yelling, berating sales people, or otherwise pushing people around to get what they want. It’s not the principle it’s the money.  Smart consumers know they have endless choices when shopping and there is no need to tolerate truly bad service or quality, even for a discount.  

Nobody likes going to dinner with you.   
Do you pull out a calculator when the check comes?   Nobody wants to ruin a good time haggling over a bill.  Eating out with friends is give and take.  Take turns picking up the check.  It’s dinner not a math test.  If you’re on a budget let your friends know and stick to your number. 

But calculating every penny isn’t the worst cheapskate dining behavior.  Do you know someone who is NEVER happy with the service and leaves little or nothing as a tip?   While over-tipping isn’t recommended, choosing to under-tip after receiving competent service says a lot about your character.  A date or business associate won’t be impressed if you seem to lack the ability to treat others fairly.  

Your buying decisions are based on solely on price. 
Researching and taking the time to find the best deal on an item is frugal.  A low price doesn’t  make something economical. Buying the cheapest can actually cost more if the item needs to be replaced or repaired.  Even in an economic crisis most Americans are still fortunate enough to consider the impact their purchases have on the environment, their community, and the world.  A good buy used to mean great product at a great price.  Now it can also mean supporting the companies and people who share your values.  If you can only afford the cheapest then so be it. Being able to afford the best value and buying the cheapest doesn’t mean you’re spending wisely. 

You give thoughtless gifts. 
The point of a gift is to let a person know you love, appreciate, or respect them.  Thoughtless gifts send the opposite message which is bad for all relationships, from love to business.  This doesn’t mean you can’t re-gift.  Re-gifting is frugal when done with consideration.  Giving Aunt Mabel those stilettos you never wore is cheap. Unfortunately custom sometimes demands we buy a gift for a person  we’re not crazy about. In the end it’s about the relationship and not the gift itself.  Make sure what you give is appropriate to enhance or maintain the relationship.  At bare minimum your gift should demonstrate respect for the receiver. 

So you’re probably noticing an underlying theme here.  Everything comes back to the golden rule.  If saving a few bucks gets in the way of being a good person are you really getting ahead?

Doom and gloom! You can find it almost everywhere in the financial press these days. How are you bracing yourself? Or are you optimistically looking for the bargains everywhere (like cheaper stocks, for example)?

Here are three tips to shore up the resources:

1. Build your networking skills. Keep your resume fresh and polished (and importantly, in front of folks who may need your expertise). Carry business cards with your contact information at all times. Get yourself listed on LinkedIn and other professional sites. After all, in a free market we are all freelancers.

2. Pick one indulgence a week — and stick to it. Do you fear the stability of your job or income? Then it is doubly important to keep your budget in mind. Use Geezeo’s free tools to create easy-to-see spending targets as part of your budget.

3. Control your food budget. Food: another major budget-buster. Control your lunch spending by packing your lunch. Suggest less expensive restaurants when you go out with friends. At home, cook more and go back to basic staples over more expensive processed and packaged foods.

If you see your retirement savings dropping, or mortgage payments increasing: hang in there. We have to have the downturns to have the upturns.

What tips would you add?