Will the credit crunch hurt you?

Many startups rely on using credit cards and loans to finance their endevors. But in today’s economy, this can hurt your chances of making it through the recession.

So what’s a small business owner to do?

• Cut down on spending and borrowing. Think about how you spend.  For example, I use a ton of paper in my business.  Not only do I buy it in bulk, but I also use both sides of the paper in my printer. I keep a box nearby for the paper that’s just printed on on side.  I use the blank side to print items I need for proofing, etc - and give some to my girls for their coloring projects.

• Keep accurate books. If you are on top of your finances, it will be a lot easier to make tough decisions when you have accurate figures.

What advise do you have for when money is tight?