The economy is sputtering and you need a stomach of iron to watch the daily fluctuations of the stock market; but people ARE still buying. Many businesses are able to make money in spite of the economic meltdown and some are growing at a rapid pace.

According to Automatic Data Processing (ADP), a provider of business outsourcing solutions, the outlook for small business looks optimistic. According to ADP, over 200,000 small business jobs have been created in the last six months. There has been a continuation of growth by small businesses, defined as companies with less than 50 workers, adding 28,000 new jobs in September.

Small businesses have advantages over large corporations. They are able to move quickly in response to market changes and customer demands. They can maintain close contact with their customer base more easily to build customer loyalty. And they can flex staff in response to business demands to save overhead.

Whether large or small, there are things you can do to grow your business in any economy. Smart businesses are taking advantage of the economic meltdown by marketing and acquiring new customers. Here are some techniques to build your business:

• Get closer. Have a focus group of key clients and ask them what types of challenges they are facing. Buy them lunch and listen to their issues and brainstorm possible solutions. Make sure you follow up with each participant, thanking them for their input. Look for possible opportunities for new products or services.
• Conduct periodic surveys. Use Survey Monkey to get customer input quickly on issues in their industry. The basic membership is free and you can create surveys quickly to be completed on-line. This survey service can also be used to gather input from employees, etc.
• Offer solutions. People are willing to pay if you can solve their problems, save them money, or save them time. No one likes to be sold to but people love to buy, especially if they see value. What solutions can you offer that makes life easier for your customers?

The latest hub-bub in Ohio and around the country has been the push for all employers to offer paid sick days to all of their employees. The proposal, currently working its way through state legislation, is under fire because many see it as yet another area where the government is stepping into the business sector.

This may be true, but this time I am behind the intrusion as long as the lawmakers can draft a law which provides some minimum of mandatory sick days to employees, while also allowing for many of the notable exceptions included in the new minimum wage law. Hopefully it will also provide some flexibility in there as well. All that, and it has my yes vote!

This is a good idea for one simple reason. The first thing you hear from teachers and school administrators is to keep your kids home when they are sick so that whatever they have isn't spread throughout the entire school. This same principle applies to small businesses, maybe even more so because a good deal of them do not have the capacity to carry on with five employees all out since Jayne didn't stay home with pink eye because rent was due next week.

A story yesterday about a new business arrangement between Deutsche Post's DHL and United Parcel Service reminded me why I love owning my own business. I can make my own decisions and do things that others might not like to do... like collaborate with competitors.

Basically, DHL has been trying to compete with UPS, offering to deliver your packages anywhere in the world. The problem is that DHL doesn't have as big a network as UPS, so it was very expensive to get packages to certain places.

The solution: Work out a deal to have UPS transport certain DHL packages. It's a win-win in my eyes. UPS increases annual revenue by an estimated $1 billion. And DHL keeps its promise to customers at a much lower cost than if it tried to transport all packages themselves.

When anyone starts a business, one of the main concerns is cost control. Even with the smallest of businesses, your cash is valuable and you want to spend it carefully. But there are certain things which you shouldn't do without, and that's the help of qualified professionals.

I've often heard of new small business owners who have found an attorney or accountant who will help them "for free" or who is willing to barter for services. I'm a believer that you get what you pay for. If you are paying nothing for your legal advice, there's probably little real value that you're receiving from the lawyer.

Let's face it, the good accountants and attorneys get paid for their work because they're worth it. Those who aren't getting paid probably aren't giving advice that's worth much. In the areas of law and taxes, you shouldn't skimp and try to save a buck. It's not worth it in the long run. Find a good professional and pay for their services. It's worth the money!

Tracy L. Coenen, CPA, MBA, CFE performs fraud examinations and financial investigations for her company Sequence Inc. Forensic Accounting, and is the author of Essentials of Corporate Fraud.

If you've recently started your own business, the potential for a recession may have you in a panic. But with every challenge, there is an opportunity for you to excel and show what you're really made of. Here are a few ideas that might help your new business weather the storm.

Plan for tough times. Examine your company's budget and do some contingency planning. Newer businesses often have lofty goals laid out in their financial projections. Come to terms with the fact that you're probably not going to hit those targets, and could fall well short.

Take advantage of low interest rates. Along with a recession comes low interest rates, making it an ideal time to borrow money. If your business is strong enough, it might be a good time to look for financing. It's especially attractive if you're able to lock in a low rate on a loan for five or ten years.

Try to diversify. Even companies that have a narrow product or service focus can find ways to diversify what they're offering and who they're offering it to. Look for new types of customers or a new way to market your offerings. By broadening your horizons while still staying in your "sweet spot," a recession can be less painful.

"Pay yourself first" is a financial principle that many are turning to as they try to grow their nest eggs. But when starting a small business, this principle cannot and should not be applied too early. One of the most common pitfalls that small business owners run into is being undercaptilized. They don't have enough money when they start the company, and it catches up with them quickly.

This lack of capital can be a thorn in the side of the owner when she or is dying to take that first paycheck from the small business. A paycheck? I'm wondering how they're going to pay the company's bills and they're worrying about paying themselves!

When you start your business, you should plan on going at least a year (if not more) without a paycheck. If you can take some money out of the company sooner, consider yourself lucky. But most new businesses (especially small ones) just don't have the cash flow to support an owner's salary in the beginning.

The issue of a paycheck can get especially contentious if you've got an outside investor funding the start-up of the business. They want to see their money go toward creating a successful operation, not toward your groceries or mortgage payment.