A: A double-dip recession globally is still being anticipated. And that means South African business owners may need to start preparing for another September 2008 very soon. Pundits are pointing to the worrisome state of the US economy; not to mention Europe's debt woes. And if these economies hit another bump, SA will again feel the effects. That means businesses here could face more defaulting clients, more spending declines and more job losses. So how does one survive recessionary times? Entrants of this year's Sanlam/ Business Partners Entrepreneur of the Year® competition share their secrets on how they grew their businesses – even in the face of the recent economic slump.

Tip one: Don't shy away from marketing

When bad times hit, companies tend to slash advertising and marketing spend first. But this is the time businesses need extra exposure to bring in new business. Zam Nkosi, founder of boutique branding agency Born and Bred, says, "To maintain cash flow during the recession, we proposed to our clients simpler and more cost effective ways of utilising their marketing budgets. We also marketed our company aggressively during this time to get our name out there and as a result we were fortunate to win some new accounts during the recession." Sam Adams founded Living Green – a company that installs organic food gardens. He reckons it's possible to save money in other ways, so as to avoid cutting the marketing budget. "We maintained our marketing expenditure instead of letting it drop and we saved in other ways by not taking on any extra overheads, nor expanding our staff contingent," he says.

Tip two: Adapt to your clients

Businesses learnt when recession hit in 2008 that clients were more reluctant to spend. That's why entrepreneurs have to adapt and find inventive ways to retain business. Vicki Bannister runs Louise Financial Services, a company that handles the CIPRO to SARS requirements of businesses. Her suggestion? "Be open to advice and do lots of research to find out what your clients' changing needs are, what your competitors offer and how you can offer the best service and product." If clients start struggling to pay, it could be worthwhile to be a little more flexible with trusted clients on their payment conditions, provided it won't harm your business. "One of my trusted clients was struggling to pay the full amount upfront so we devised a monthly repayment plan. This doesn't compromise my financial situation and it allows me to retain my clients and over the agreed payment term I will be paid in full", she says.

Tip three: Cash flow is king

Large corporates with US and European operations took a real knock during the previous recession. So if the economy's facing a double dip, make sure you're prepared this time round. After all, if these clients can't pay, and they owe you large amounts, your cash flow could be wiped out. PJ Gaddin supplies branded apparel and corporate gifts to promote the brands of his clients, mostly large companies, through his company, My Wardrobe Promotions. He says, "I don't think anyone is completely safe from the global recession, however my focus has been to maintain a healthy cash flow and reduce accounts receivable." Gaddin's now looking to minimize risk, by "expanding our client base to include smaller local businesses and reduce reliance on our large global clients".

Tip four: Manage your services, and your staff

Recession or not, the fact is quality services sell. Born and Bred's Nkosi says, "Slaving to sell good quality work pays." Reality Training Concepts is a company set up by Charmaine McCue, which promotes employee wellness in the workplace. She says the recession has made the business environment more challenging, and upped the stakes for entrepreneurs. "Clients are wanting good service, so you constantly have to provide." And Gaddin of My Wardrobe Promotions says handling your own staff properly is just as important. "Manage people loosely – provided you have hired the right people. Empower people as they are often better than you at carrying out certain tasks and are likely to come up with excellent, fresh ideas when given license to do so."

Tip five: Clothes maketh the man

The good news is – there's no need to spend thousands on that Prada suit. Instead dress to connect with your client. According to Bannister of Louise Financial Services, "There's no point going in a top of the range suit to a client; this will make them think you are very expensive." Rather dress down – like smart casual – to reach smaller businesses if that's who you're targeting, to enjoy a better connection. "Your clients need to learn to trust you and your ability, and to feel comfortable in your presence enough to tell you what you need to know."

Tip six: Get back to basics

Finally, if recession returns, use it to benefit your business. South Africa's small businesses found it to be the best time to get back to basics. Living Green's Adams says he used the recent recession as an opportunity to streamline his operations, meeting with a consultant to reassess the company's core activities. "This clarity of purpose has made it easier to... excel in those areas without unnecessary distractions." McCue's advice? "Stick to the basics, don't get caught up in how you're going to make the money. Go out and do it."