Opening a business can be difficult in any economic climate, but it can be even more daunting during a recession.

One small-business owner, Andy Wells III, says that proper planning, making smart decisions and thinking creatively can help businesses stay afloat during the current economic crisis.

Know What You're Getting Into

Wells, of Wells Technology in Minnesota, said one of the keys to getting your business started -- and keeping it afloat -- is to be aware of all aspects of running a business.

Wells, who was formerly named the U.S. Small Business Administration's Minnesota minority small-business person of the year, said that most people decide to start a business based on a skill or idea. However, he said many them focus on that talent and forget about the business side of operating a company.

"One thing is to realize that marketing is half of the struggle," said Wells, the founder and president of Wells Technology, which manufactures products for the military, aerospace, electronic and computer industries.

He said once you develop your product, you then need to find a way to market it and to make people want to buy it. While advertising can be expensive, Wells suggested working with a local printing company -- or even a local college -- to find deals in printing advertising and marketing materials.

Wells also said the Small Business Association and Procurement Technical Assistance Centers offer assistance and tips on how to market your business.

Wells also recommended setting aside company funds -- up to $5,000 to $6,000 -- to educate yourself and maybe even your employees.

He said he spends the money to attend short, one-week courses offered at colleges around the country that teach the ins and outs of business and go through current trends. Wells said the courses are not only informative, but they also put you in touch with other business owners who are likely facing similar problems.

Where To Find Financial Assistance

Sometimes even knowledge and an effective marketing plan can't prevent a small business from hitting financial trouble -- such as during the current economic crisis.

If your company finds itself in need of financial assistance, there are places you can turn to for help.

One place to turn to is the SBA, which provides several programs to assist business owners with loans, seed money and surety bonds.

The SBA has loan and debt financing programs that will work with businesses to acquire funds. It also has Small Business Investment Companies that have investment funds available for small businesses. The SBA also offers surety bonds that were developed to give small and minority contractors the means to bid for projects.

If you don't qualify for SBA assistance, or prefer to go another route, there are other options to deal with financial troubles.

Wells suggests using your own contacts, being up front about your problems and being creative.

"You have to remember that as an entrepreneur, you have some control," Wells said.

Wells said one thing business owners control is salaries -- particularly your own. He said that if you're struggling to make your payroll, then the first deduction should be your own check.

"It's quite a motivator," said Wells, who said missing a paycheck can force an owner into thinking of new products and new ideas to spark business.

Wells also said to call your suppliers and bank if you're in financial trouble. He said that if you can't pay your supplier one month, by alerting them to the issue they might be willing to work out a plan with you. Wells also said banks can be understanding if you're upfront with them, and they might even be able to offer you some financial advice.

"People are willing to help when you're sincere," Wells said.

How To Increase Business

To survive the recession, small businesses need to keep attracting customers and trying to beat out their competition.

To accomplish this, SCORE, a nonprofit association dedicated to helping small businesses in the U.S., offered tips to business owners.

For one, they recommend appealing to an online audience. Businesses can cheaply build a Web site for their company which will allow them to attract a new, online customer base.

SCORE also suggests evaluating your competition. The organization recommends comparing how your competitors serve their customers and what makes a customer choose one business over the other.

Wells said that to woo a customer away from a competitor, a business owner needs to over-deliver and prove that it is trustworthy.

Wells said that it can take a long time to land a new customer, but businesses have to prove that they are going to be around for a while.

"They don't want to join up with a company that's going to be here today and gone tomorrow," Wells said.

Wells said one way to prove that is to be persistent, keep your current customers, and give your clients a deal they can't refuse.

"Give them everything they expect, plus a little extra," Wells said.

He said that if you promise a delivery in a week, give it to them within a few days. He also said to give small discounts to beat out a competitor's price or just to show appreciation to a loyal customer.

Wells added that it's better -- and cheaper -- to keep an existing customer than to get a new one, so he also recommends making sure you don't lose any clients while you're pursuing others.