Small business owners cut costs to keep clients, build relationship

In the down economy, some small businesses are choosing to focus on maintaining client relationships instead of bottom lines, thereby investing in their client rapport for when the economy picks up.

Instead of ending the relationship when another small business client hits a rough patch, some small business owners are reporting cutting their own fees to keep the client relationship alive - and build a stronger relationship.

Amy Power, president and CEO of Dallas-based Power Public Relations, told the Salt Lake Tribune that when some clients could no longer afford her services, she cut her retainer and told the client that their relationship would not be neglected.

"I think they appreciate that there's a certain amount of honor that goes with that kind of agreement," Power told the news provider, adding that when the economy improves, "I believe my firm will be better positioned for stronger relationships and better business."

Alternatively, small business owners that are having trouble with business financing may consider renegotiating some of their contracts, as many vendors would rather lose money than lose business entirely.

"The philosophy is, some revenue is better than no revenue," Richard Dukas, president and CEO of New York-based Dukas Public Relations, told the Salt Lake Tribune.

Approximately 51 percent of small business owners say they plan to decrease spending over the next six months, according to the latest Discover Small Business Watch.