KEY POINTS:
For Ponsonby florist shop owner Kerry Bradburn, a slow-down in sales in July was a sign to crank up the marketing drive on her 15 year-old business.
She joined up with several other retail businesses to launch a sponsored email service to existing customers letting them know about specials as well as tempting them back into the shop with loss-leading gifts on purchases.
"We started training our customers to look for it."
Now they get calls asking what the specials are for the week and the database has expanded to many of those who have received the gifts. She says it has helped boost sales by 30 per cent.
Bradburn says reinvesting in the business is vital to surviving tougher times even though spending more money can be the last thing businesses want to do when cash is tight.
"It is a bit tough, you've got loans with the bank so you have to be really careful. It does make you feel you want to stop spending. But in reality you have got to do it. If you don't you just won't get the growth."
A lot of the company's business is done through word of mouth so keeping customers happy is part of her business plan.
She also cautions against advertising which is not targeted.
"We would steer away from advertising that is seen as just throwing mud at a wall. It's certainly not the time to be wasting money."
Instead she suggests sticking to tried-and-true clients.
"Why go the hard way when you have got established clients. It's a more economical way to build a business."
Bradburn, who was running a restaurant at the time, remembers the 1987 sharemarket crash as being much worse.
"Yes, this is a little bit scary but it's not as bad. This is more about people's homes losing equity."
Tougher times for Kati Kasza, managing director of Evolu Botanical Skincare, has meant sticking to the cash-flow management basics.
"For us because we are small we outsource a lot which means where ever we can we do just-in-time delivery. We are really managing the inventory much more than we ever have done before."
Having multiple revenue channels has allowed her to put more focus into specific areas, such as the hotel and lodges she sells to which have been hit by the recent tourism down-turn.
"Because we deal with customers directly we are able to find out how we can help them. We can turn around a promotion very quickly. We have that ability because we are little."
The business has been running for 10 years and she says the past two have been the toughest because of increased competition. The key message she would give others is "don't panic".
"I really believe that. You just have to knuckle down. Be resourceful and really talk to your customers."
