Can you grow your business during a recession? Historically, small companies can thrive during an economic downturn due to weakened competition and corporate cutbacks that level out the playing field. According to a survey conducted for Intuit, 9/10 of small businesses see opportunities for growing business this year. It’s this planning of growth that keeps 27% of entrepreneurs up at night, next to the 21% who are concerned about scraping up enough money to pay the bills. By taking a look at some of the thriving entrepreneurial success stories, we can learn a thing or two about leading a bright vision through the dark tunnel.

It was the year 2000. Silicon Valley was launching a new high-tech startup everyday. Business parks sprung up and it didn’t take a rocket scientist to figure out that something transformative was taking place. Meanwhile, two buddies — Adam Lowry and Eric Ryan — were making market plans as well… only theirs had investors laughing, rather than shelling out cash. Even though no one was biting on the concept of neatly-packaged, environmentally-conscious soap and hygiene products, they knew they could appeal to a younger, hipper audience with their products and give giants like Proctor and Gamble a run for their money. For Lowry and Ryan, growing business is about doing it yourself to save precious cash (like mixing soaps in bathtubs and bottling it themselves); it’s about continuously selling your concept to your vendors and other venture capitalists; it’s about constantly fundraising. As Ryan says, “The hungriest wolves hunt best.”

Google is perhaps the most famous success story of growing business during a fragile economy. After the dot-com bubble burst, no one thought an internet-based business could ever fly. There was so much mistrust, anxiety, lost investment and disillusion that it didn’t seem likely Google could make it. “We looked at all the past recessions from 1950 on and we found that direct mail — Google’s most direct predecessor — actually grew during six recessions,” explained Cowen and Company analyst Jim Friedland. Some of their success is attributed to working across channels and offering a diverse line-up of products from email, search and news to maps, video content and online books. Their ability to engage in community marketing online, on television, in newspapers and on the radio has helped them get ahead during tough times, but the bottom line is that Google has a great and innovative product!

Growing business ventures– during a recession or not — takes innovative thinking and marketing strategy. For the 2009 holiday season, Wal-mart is listing more than 100 toys for $10 or less to appeal to cash-strapped customers. Toys R Us is planning to open up 20 satellite stores in shopping malls during the pre-Christmas months to accommodate shoppers who are looking to make fewer trips and save on gas. Target is promoting “dashing designer deals” developed by fashion designers like Carlos Falchi for $25 or less. K-Mart is promoting its popular “layaway” program again. Stage Stores is launching a “Christmas Cash Club” just “like grandma used to have” — offering $10 cash-back for every $100 in purchases. While this holiday season may still shrink by a projected 1% overall, the market plans that seek new strategies will be the victors.

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Making the jump from corporate worker to internet business entrepreneur requires a natural knack for decision making and time management. Pamela Slim, author of Escape From Cubicle Nation, “Most entrepreneurs go in thinking they just have to go in doing everything themselves, but that just isn’t true.” She says small business owners must have a strong understanding of their strengths and weaknesses. If internet design isn’t your thing, for instance, you may have to outsource this job to someone else who specializes in this field — perhaps another independent entrepreneur. Here are some other tips if you’re considering making the switch to running your own show.

There are many different types of internet business ventures to consider. Some people prefer to go with what they know. Brent Bouchez, David Page and Nancy McNally all worked for top-tier ad agencies before forming their own marketing company targeting consumers 50 and older. Michelle DeAngelis worked at Bank of America for 15 years before branching off to do her own private consulting. By contrast, some internet business entrepreneurs decided to forego their past identities and follow a particular pursuit or passion. Ali Galgano transitioned from a corporate recruiter at Goldman Sachs to a seller of unique costume jewelry. Kelly Elvin went from being a corporate lawyer to a dog trainer. What matters most is that your home based business is something about which you are knowledgeable and passionate.

If you are wondering if you have what it takes to be your own boss and run an internet business from home, then you may be interested in the most recent Ewing Marion Kauffman Foundation survey of 549 company owners. Based on the responses, EMKF found that there were some typical traits associated with entrepreneurs. Most come from upper-lower or middle classes, performed well in school and obtained at least a bachelor’s degree (only 5% did not). Just over half the company founders were the first in their families to launch a business. Three-quarters of all respondents said they worked for another company for 6-10 years before branching out on their own. Many of these business owners were the middle child in a three-child household and are currently married with kids. These are people who are, by and large, motivated to build wealth and capitalize on a great idea.

Even if you don’t want to run an internet business, you will need to learn about how IT and business complement each other. To get started, try to come up with a sensible plan that is based on what you already know. If you were a cook or baker, then open your own catering company or bakery. If you worked for a law firm, you can secure your own clients and start your only legal practice or outsource yourself to other law firms. If you worked in retail, start your own clothing design company. If you were an engineer, consider a startup or become a manufacturing consultant. If you love sports, become a personal trainer. If you love animals, start a doggie daycare, a grooming business or pet training service. There are many opportunities for advancement, despite the recession, so check out the Small Business Association resources and learn about how to proceed.

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GM may very well be the prime example of a company who chose all the wrong anti-recession tactics. Instead of adapting to the new times and emphasizing smaller, more fuel efficient vehicles in customized colors — they stubbornly pursued their current course of dishing out truck after truck and SUV after SUV. They believed this was the true American spirit — bigger, more rugged and, undeniably, more expensive. The top executives failed to realize that the money market was tightening up for consumers and that this new environmentalism tidal wave was already moving the Toyota Prius and the Honda Civic to the head of the queue. Instead of following the pathway to bankruptcy and bail-outs, here are some smart moves during the recession.

The most important of all anti-recession tactics is to understand the new problems your customers face and offer them innovative solutions. The most successful businesses are ones that can save customers money, make their lives less stressful and offer more value. For instance, one company developed a fast-curing resin to maximize productivity for injection-molding machines; yet, when the recession happened and greater output was no longer needed, the company switched gears and developed a less expensive, slower-curing resin, which was ultimately profitable. “We can’t add meat to a burger anymore,” admits CKE marketing chief Brad Haley, who oversees the Hardee’s and Carl’s Jr franchises. When times are tough, executives need to be more creative. He adds, “Carl’s Jr. is promoting a guacamole bacon cheeseburger. Avocados are a less expensive topping.”

Some managers remain purse-lipped and hunker down in their bunkers as their primal anti-recession tactics. Yet tips from the most successful CEOs focus on creating a balance between realism and optimism. No matter what the situation may be, a good management team must always be communicating with the rest of the employees. No climate is worse for productivity than employees who worry about being fired, suppliers who fear they won’t get paid and customers who have no confidence. Julia Stewart, CEO of DineEquity (parent company of Applebee’s and IHOP) says, “It’s important to assure your employees by making clear your vision, making sure they know that you care, and making sure that you’re direct and honest. They just want the truth.” During a recession, it’s important to be realistic but also to emphasize what’s working to instill confidence in the workforce.

In the past, anti-recession tactics used to be to take the business overseas. Yet, as time goes by, the wage gap in China, Malaysia, Thailand and India is rapidly shrinking as these emerging superpowers begin to gain momentum. Manufacturing costs, taxes, tariffs, speed, marketing training and transition expenses can all rack up the expenses. That doesn’t mean that executives shouldn’t recruit for the best talent, however. Now, with so many diligent worker bees out on the market, it’s a good time to weed out the non-performers and replace them with top talent. Mel Stark of the Hay Group consulting firm says that the best companies go the extra mile to reward their “most focused and driven employees” — recession or not.

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“Maybe they’ve lost their job at a larger firm and they want to follow their dream by starting a small business, so we’ve actually seen an increase in small business startups,” explains Jim Schlies, VP of Economic Development at the Fox Cities Chamber of Commerce. What it all boils down to is having a solid business plan, he says. Secure enough funding, spend frugally and seek to maximize your marketing value. These are just a few tips to help you get started.

Sometimes it’s hard to predict where you’ll find your niche, so it’s a good idea to create a small business startup that encompasses a couple of different areas. For example, Dan Wiley, a 48-year-old first time entrepreneur, started a Los Angeles based firm that provides a range of services from public relations and advertising to branding and internet design. “I never expected we would be doing as much website designing as we have been, and that so few customers would be looking for our public relations services,” Wiley admits. His advice to aspiring innovators is to save up a year’s worth of operating capital to cushion the blow, should things not work out as anticipated.

It can be difficult to start a small business during a recession, when consumers are trying to cut corners. In August of 2008, three friends — Jonathan Miller (28), Maria Sutanto (27), and Jonathan Kelley (27) launched “Element Bars,” custom energy bars with just $50,000 in combined savings. “We’re on the wrong side of customers who are trying to trade down,” says Miller. “To combat tightening wallets, we’re trying to do more marketing with coupons.” He advises to start small and test the demand for your product, leaving yourself room to grow, rather than trying to immediately manage a multi-million-dollar headache.

“We had to delay our launch since we didn’t want to have a product on the market without a web presence,” says Monica Murphy, who markets the High Heeler, a rubber stop device that fits onto high heeled shoes. She relates that sometimes the toughest part of launching a small business is finding a web designer who shares your vision and is willing to work with you. “Everything costs twice as much and takes twice as long as you plan for,” adds business partner Becca Brown. “No one else will be as invested in your business as you are,” Brown warns, “so don’t expect everyone to follow through when they claim they can help you.”

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Today’s news is certainly gloomy, with talks of unemployment, decreasing home values, family business closures and low consumer confidence. Americans are tuning in to shows like Suze Orman, Mad Money and the Clark Howard Show for advice and money saving tips that can help them weather the storm. The silver lining is that there are many areas to save and these strategies will help big spenders get ahead when their situations improve too.

“Getting organized” tops the list of money saving tips because, without organization, you can’t get anywhere. Many consumers end up paying late fees, reactivation charges, interest and penalties all because they missed a due date when their papers got shuffled into a pile. Not surprisingly, “Getting Organized” was right up there with “Losing Weight” for Top New Year’s Resolutions in 2009. A quick stop at Office Depot to buy a $30 filing cabinet is a great way to get started. You might want to have hanging files of different bills (credit card, car loan, taxes, utilities, mortgage, etc) and you might want to demarcate a section for “unpaid bills.” Next, invest in accounting software like Myelopes, Quicken or Microsoft Money. Why test out your amateur mathematician skills when you can use a computer’s expert accuracy every time to ensure no mistakes are made on your annual budget? You’ll find all your financial information is neatly filed and printable for your convenience. These programs can even remind you to pay bills, allow you to check your finances online, track your purchases and lets you know how much you have left to spend in each category based on the initial budget you set up!

The second money saving tips is to scrutinize your expenses. You can easily make up a spreadsheet on your computer to list all expenses, including restaurant excursions, entertainment, groceries, movie rentals, clothing, gas, electricity, hydro, mortgage, cable, cell phone, internet, credit card payments, gifts, alcohol, etc. It can be a real eye-opener to see where all your hard-earned money goes! Your plan of attack should be to add up all your monthly “must’s” (things like rent/mortgage, utilities, transportation, credit payments) and subtract it from your monthly earnings. This will give you an idea of how much money you have to play with. Then you should divide that number by 4 to see what you can afford to divvy up each week. Then you can prioritize where your cash is best spent. Also, be sure you’re saving up a safety cushion of at least $2,000 to $5,000 to protect you in case of an emergency!

Following these money saving tips, and especially during the current recession, may feel like a culture shock at first. You might instinctively want to rebel against the plan the moment it’s written. The best way to adhere to your plan is to leave in some allowances for fun. Instead of seeing the $10 movies, you can opt for the $1.50 cheap shows, for instance. Or you can dine out once a week — but at lunch time, instead of dinner time. After a while, you’ll find that saving money can be quite liberating, actually. As former US President Calvin Coolidge once said, “There is no dignity quite so impressive and no independence so important as living within your means.”

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“Startups are about the future,” writes author and entrepreneur John Nesheim. “They are about the promise of tomorrow. Like children with eager parents, they are excited about what they can become. Meanwhile the struggle of daily life goes on. As you execute your company plan, it will include inventing the future. When you can both do and dream in your startup, you will have made a great contribution to your unfair competitive advantage.” In this recession, a number of smart thinkers have decided to branch out and form their own supporting businesses or consulting firms to provide large companies with the tools they need to succeed. Often times, the right answers are within a company — with its frontline workers — but no one listens and groups consume the organization. By outsourcing crucial tasks, a business can face forward and get a good, honest, third-party opinion.

Hiring a supporting businesses firm to cover your marketing campaigns can be a real money-saver in some cases too. Many company leaders want to take their offline advertising efforts and put them online but don’t know the first thing about pay-per-click, affiliate marketing, keyword optimization, social networking and e-commerce marketing. An outside firm can provide you with all these services, with tips on how to move forward, or will even come to your business and present training workshops for your staff members to bring them up to speed. With today’s competitive environment, there’s no room for dinosaurs!

Search engine optimization (SEO) is another area where supporting businesses thrive. Every homepage internet design should have searchable keywords, image tags and web copy that attracts visitors to the site. Professional SEO experts use a variety of analytic programs that let them know what industry-related terms people are looking up, what the most competitive search terms are and what words are best incorporated into a business’s homepage. By effectively designing your homepage with these factors in mind, your site will become a magnet for web traffic, thus increasing sales. Of course, some webpages have fundamental problems that send prospective clients fleeing. An SEO expert can let you know how many people are visiting, what pages they’re looking at, how long they’re browsing, which pages are sending clients elsewhere and where these dissatisfied visitors are going next. This research can be invaluable to a business.

According to a Study by The Kauffman Foundation, these new supporting businesses are crucial to economic recovery during the recession. Job creation and innovation are at the forefront of every successful economy, the study found. “Seventy-nine percent of Americans say entrepreneurs are critically important to job creation, ranking higher than big business, scientists and government,” the report stated. It seems that a recession does not have a significant impact on the formation and survival of new businesses as new startups increase.

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The ailing economy has many small business owners reassessing their position within their industries. When every dollar counts, CEOs can no longer throw money at this idea and that; they must focus on what’s working and correct what’s not. Stu Richards, CEO of Bredin Business Information, says that 56% of newsletter recipients said they received information relevant to their industries, so now is a good time to do a little research to find out if you’re delivering what people want. Similarly, Bob Johnson, VP of IDG Connect, found that only 42% of buyers said that educational and promotional content they received was relevant to their needs. Small business owners need to look at their homepage statistics as well and see if there are any “conversion killers.” Read on for more recession tips that can help you reach success in any economy.

At the 2009 MarketingSherpa B2B Marketing Summit, there were several recession tips and recommendations to help small business entrepreneurs weather the storm. The first tip was to “re-engage old leads.” According to Brian Carroll, CEO of InTouch, research reveals that 80% of all leads marketers generate are discarded, lost or ignored. Sending your sales team out to find new leads all the time can be a grueling, tiresome practice — and an expensive one! Instead, you can use marketing newsletters and social networking sites to re-engage and reinvigorate potential contacts. Caroll adds that emailing relevant industry articles to old leads and following up by phone generated a 375% increase in conversions. One marketer said his team achieved a 44% increase in subscribers by offering a news announcement and prize. “If you want to make a difference in the fourth quarter this year, go back to what you did in the first quarter of this year or the fourth quarter of last year, and there’s a lot of opportunity there,” Carroll said.

One of the more unconventional recession tips is to consider starting up an eBay business on the side. Whether you are naturally “crafty” and love making things or you just have a lot of garage sale and antique items you’d like to get rid, there is an online market for what you’re selling. As with any job, you may need to create promotional articles to lure people to your site. Aside from eBay, you may try a site like www.craigslist.org or www.etsy.com to sell some of your goods. This supplemental income can really help during a down economy. People are still buying now if the items and the prices are right.

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