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Author - Robin Bowman - Senior Business Editor

There isn't a whole lot of good news out there for businesses. In fact, now we know officially what many small businesses knew already - the economy shrank in the last quarter of 2011. All we can be fairly sure of is that things are not going to get better, at least not for a while. The fact that some 110,000 public sector jobs are expected to be cut this year will, by itself, have a dampening effect in many parts of the country.

Meanwhile, the government is desperately trying to encourage people to start their own businesses, even announcing plans to let small businesses use empty government offices as part of its Business In You campaign. 

Few small businesses already up and running are having an easy time of it. For many, just staying afloat is going to be the priority in 2012.

There's clearly no magic spell to get every business through the tough times; but there are several positive ways to adapt and give your business a fighting chance.

Here are 10 things your business can do:

1. Work harder on marketing your businesses.  Businesses everywhere are not just slashing prices to the bone, they're also coming up with creative offers, loyalty schemes, two for ones, a free bottle of wine with a meal for two, and many other marketing devices. Many of these marketing drives are not new, but it's important to get out there and try and win business. If you can be more original, so much the better.
2. Look at all your sales material and your website, if you have one. This is a great time to sharpen everything up.Think carefully whether you're matching the right products or services to the right customers. Sales material, window displays, phone leads, converting a visitor to your website into a customer - it's all going to take more effort and more careful planning.The key is to stand out, be exceptional and make your voice heard.The good news is that if you can sell through a recession, you are going to do really well when the upturn comes.Pay special attention to your website. Now is the time to carry out all those tweaks you haven't got around to - all designed to make the customer experience better and buying easier.
3. Turn your product, whatever it is, into an investment.  During a recession, people generally cut back on what they perceive to be luxuries.  So, pitch       your product more as an essential item or service, if possible.  If you sell food, then align this with health benefits; if a restaurant, extol the need to escape the gloom perhaps by promoting a romantic evening for couples, or a family event; if you service cars, talk about the need for safety; if you run a painting and decorating business, push the idea of property upkeep as investment preservation, and so on.
4. Look for ways to link with other businesses that could benefit you both. You could offer a joint or a bonus service. This could simply be a case of mutual recommendations, or discounts from one business when a customer buys from the other. Or it could mean actually partnering - a builder and a plumber, say, who feed each other work and work together on jobs.  If you already do this, it may be worth trying to forge new, additional links.  Be creative and find ways for mutual benefit.
5. Work your customer base hard.  The easiest customer to get is one you retain. Keep in touch with them, even if you're not directly trying to sell them something. In fact, it's best if you're not, that way you will gain credibility and build loyalty.
6. Don't act drastically unless you really have to. Economies have always proved to be cyclical; so, while it's hard to see light at the end of the tunnel, things will almost certainly pick up - eventually. Your business needs to be ready for that upturn. If you cut back more than you really need to - by letting more staff go than is absolutely necessary, for example - you aren't going to be in a position to respond to the upturn quickly.
7. If you have cash, this might be the time to invest.  It seems counter-intuitive, and few businesses do, in fact, have cash to spare; but for those that do, investing in hard economic times can be a great idea. There are great deals to be had when others are desperate to sell. It may be a good time to fix rent, or stockpile on the materials your business needs.  Make sure you negotiate hard - it's a buyer's market.
8. Review your business plan and forecasts. It's important to be realistic and to adjust projections accordingly. This way you avoid nasty surprises.
9. Look for savings, but do not make cuts that mean you will put your business at risk. Do the small things first, like reviewing utility suppliers, looking at heating levels, lighting, plans for replacement of hardware and office supplies. If one isn't already being given, always ask for discounts.
10. Accept the fact that business is suffering, if it is; but keep it in   perspective. Everyone who starts a business is a natural optimist and has self-belief. Don't let the constant drip, drip of bad economic news weaken your instinctive resolve. Bad times will end.  This is important because if a business's morale goes, everything else will follow.

Robin has been a journalist for more than 20 years, during which time he has held several senior media management positions in both Fleet Street and Hong Kong. Robin recently returned to the UK after being based in Italy for six years. He has a passion for business innovation.

The content of this article reflects the views of the author and may not necessarily reflect the views of Premierline Direct.