While some improvements to the business climate have occurred, the recession is still an ongoing battle for many, particularly small businesses. The broad economic slowdown has individuals still cutting back on discretionary spending, while corporations delay major purchases and shelve new initiatives.

For many small businesses with limited resources, these and other factors often combine to pressure bottom lines past the breaking point, creating a domino effect of other dilemmas, such as a credit crunch or layoffs.

L-A SCORE treasurer and counselor Peter Sassano argues that a downturn doesn’t have to spell disaster for your small business, however. Sassano says, “Good financial management practices will help weather even the worst of economic times, and help to capitalize on new opportunities that will come with the return of good times.”

Specifically, Sassano recommends the following:

• Begin with the basics: Good record keeping, budgeting, cash-flow monitoring and credit management are as important in surviving bad times as in good times.

• Consult your bank: Lenders can tap their experience in economic cycles to advise you on issues specific to your business. Look for federal loan guarantees now available, but realize that banking regulators are holding banks to higher standards.

• Be on good terms with your creditors: Falling behind on payments is never the answer, even if it is “just this once.” Creditors will be more amenable to renegotiating terms to small businesses they consider to be conscientious and reliable.

• Watch your receivables: By the same token, you need to stay on top of any outstanding debts to your company, particularly problem accounts. Be firm, but also willing to negotiate where appropriate.

• Scrutinize your spending: Rather than arbitrarily slashing your budget, try to spend only on those things that have a justifiable positive effect on your business.

• Step up your review of financials: Don’t wait for the usual monthly report. Getting them more frequently will help you to make needed strategy adjustments in meeting changing market conditions.

• Keep marketing in the mix: Look for cost-effective ways to keep your business visible to current customers and potential new markets. They may be ready to restart their spending long before the headlines confirm an end to the economic crisis on Main Street.

To learn more about building your small business, contact SCORE, a nonprofit organization of more than 10,500 volunteer business counselors who provide free, confidential counseling and training workshops. In the Lewiston-Auburn area, call L-A SCORE at 782-3708 for additional information and an appointment; in Rumford-Mexico call 364-3123; in Oxford Hills call 743-0499. Or view SCORE’s Web site at www.SCOREMaine.org.