Small businesses 'looking to improve efficiency to survive downturn'

Although owners of small businesses may be feeling the pinch of the credit crunch, there are a number of steps they can take to survive.

Such is the assertion of Marc Compeau, where in an article for Forbes.com he reveals that a number of small firms across America are taking steps to improve their working practices and perform more effectively.

One of these is Mary Jane Lawrence of Mirror Lake Inn - a boutique resort based in Lake Placid, New York - who reports that by taking the time to listen to their customers and respond to their recommendations, it has recorded an increase in bookings.

Meanwhile, Doug Weisz, general manager of Evergreen Subaru in Auburn, Maine, reports it is vital for small businesses to continue to invest money into training even as they look to reduce spending in other areas.

He said, "As a cash-starved start-up, we're constantly cutting corners and finding reasons not to spend money, but the one exception is in the realm of training."

Weisz claims that investing in training would help his organization to become "a competitive, viable business that would deliver both on our financial targets and our customer-service objectives."

Todd Smith, president of Dutchtub U.S., the American arm of Dutchtub, added that changing production methods will help to generate savings, a move that in turn will help to expand his business.

In other news, Gene Marks, owner of the Marks Group, told Business Week that those small firms that look to take advantage of President-elect Barack Obama's proposed economic policies should "prosper."

For those looking to grow a firm but are finding in difficulty in getting lines of credit from a bank, a small business loan from an alternative lender may be useful.