Small Biz: Stay Afloat in Tough Times

However, before accepting any deal, review the terms to make sure the costs are manageable and worth the rewards.

Knowing When to Call It Quits

Sometimes, a business just won't work because its supplies a product or service that is too costly, inadequate, undesirable or simply offered to the wrong market. Ice-cream shops might not be as popular in Antarctica as they are in Florida, and an outdated, gas-guzzling SUV may not be popular anywhere these days.

It's also possible that a business has products or services that people want, but has expanded too far, too fast, notes DeCotiis.

"With companies like Starbucks(SBUX), what gets in the way is hubris," he says as an example, noting that on a recent business trip he saw two locations directly across the street from one another. "They shouldn't have opened up those 600 stores."

Managers should assess when business started slowing down, what has been driving the decline, and whether it has enough available capital to wait out the storm. While every business goes through peaks and dips, if it is weak because the market has evaporated for good, managers should close underperforming locations or just call it quits.

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