(ARA) - Small business owners have been hearing about the economic recovery for months. Yet for many entrepreneurs, the improving macro-economic data has yet to reveal itself in their daily lives and businesses - and many are wondering when they'll see it in their corner of the economy.

Nonetheless, as a small business owner you can take steps to prepare for improving conditions and ensure your business recovers quickly.

"Small business owners are essential players in the economy's overall recovery," says Raj Seshadri, head of small business banking at Citibank. "Fortunately, there is a lot that they can do to help their own businesses recover sooner, and to be poised to take advantage of emerging opportunities as the economy improves."

Seshadri offers five tips for small business owners looking to take recovery into their own hands:

1. Keep track of all funds that come into or go out of your business on a daily, weekly and monthly basis. "It's surprising how much value business owners find when they focus on their expenditures and revenues," Seshadri says. Tracking expenses, sales, inventory and revenue is vital to good cash flow management and helps you grow your business. Knowing how much your business spends and how much it brings in each month gives you a true picture of just how well the company is performing.

2. Make the most of marketing, from advertising and public relations to special promotions, discounts and social media. When the economy suffers, it's more important than ever to continue marketing efforts, experts say. And marketing isn't always about spending money. Consider connecting with referrals using low-cost channels and experimenting in new areas - have your tried YouTube? Have you tried Social Networking? If you cut back on marketing but your competitors do not, you leave a void they can easily step into. Continuing marketing efforts through a downturn can help ensure your business is front-of-mind when the economy improves and customers start spending more money.

3. Find a great financial advisor. Many small business owners turn to their accountants or their peers for advice. Some consult professionals, or network at their local chamber of commerce. Others rely on their small business banker. "Every community has advisors for small businesses," says Seshadri. "It's important to find an experienced, qualified advisor you can trust."

4. Find a great bank that will work with you. Business banking is about building relationships. A small business owner with a long-standing relationship with a bank can take full advantage of its products and services as well as bring a proven track record to help the bank make credit decisions.

5. Stand out with customer service. It's a complaint you hear from all quarters these days - no one seems to care about customer service anymore. Caring about customers and treating them with respect can help ensure they keep coming back to your business. Teach employees how to provide excellent customer service, and make sure you lead by example. In addition to courteous, prompt service, consider showing customers your appreciation through special promotions and loyalty rewards programs.

"Small business owners don't have to wait for the recovery to arrive; they can create their own recovery by taking the right steps toward improving their business operations," Seshadri says.

To learn more about how banking products and services can help improve your small business, visit www.citibank.com.

(ARA) - Given the state of the U.S. economy, you might assume that turning your hobby into a small business right now isn't the best idea. On the contrary, launching your own small business in a down economy can be a very smart move -- if you plan in advance and set yourself up for success from the start.

Here are 10 tips that all budding entrepreneurs can follow to make their dreams of owning a small business a reality in 2010:

1. Develop a business plan

While preparing a business plan is a requirement for any small business owner seeking to raise start-up funding through a traditional loan or venture capital, every business can benefit from this practice. Your business plan should define your business, its products and services, while outlining your business goals, operating procedures and competition.

2. Consider incorporating your business or forming an LLC

While many small businesses choose never to incorporate, there are many benefits to doing so. "Incorporating your business or forming a limited liability corporation (LLC) is important because it helps protect your personal assets from business debts and liabilities," says Karen Kobelski, general manager of BizFilings, a full-service online incorporation service provider offering small business owners fast, easy and economical ways to form a corporation or other business structure online or by phone. "However, incorporating isn't just about protecting your personal assets; other benefits of incorporation include tax advantages and greater credibility with customers and business partners, which can give incorporated businesses a much-needed advantage over non-incorporated operations."

3. Select an accountant and attorney

Many small business owners seek advice from accountants and attorneys. As you research your options, get referrals from friends and family and turn to professionals who have worked with other small business owners or companies in your specific industry.

4. Get necessary tax identification numbers, business licenses and permits

If your small business will rely on employees, a federal tax identification number or employer identification number (EIN) is required. Most businesses will also require licenses and/or permits to operate in your city, municipality, county and/or state.

5. Insure your business and investigate other requirements

Some industries have specific insurance requirements -- do your homework. It's also important to research additional government tax and insurance requirements that might apply to your business, particularly if you plan on having employees.

6. Open a business bank account

When you own your own business, it's crucial to separate business finances from personal ones, so opening a business account is key. If your business is not incorporated, most banks will require a DBA (doing business as); contact your bank about requirements prior to opening an account.

7. Arrange your business accounting and apply for loans

It is critical to properly account for all business disbursements, payments received, invoices, etc., whether you use an accountant or handle the finances yourself. If you don't have enough capital to start a business, seek funding from banks or through Small Business Administration (SBA) loan programs.

8. Establish a business line of credit

Establishing business credit will help reduce the number of times your company prepays for purchased products/services and helps establish a strong credit history, a beneficial practice when negotiating vendor and supplier relationships.

9. Ready your workspace

For home-based small businesses, make sure that you are meeting the zoning requirements for your area. Non-home-based businesses will likely require office space, which could lead to the purchase/lease of furniture and office equipment. Planning for this in advance will ensure that you have enough money to cover these costs.

10. Create a brand identity and start marketing your business

To diversify your business from the competition, you should establish your company's identity and start publicizing your products and services. Consider developing a unique business logo to include on business cards and letterhead, advertising your business in the local telephone directory, and developing customer leads -- from friends, family, and business associates. These activities will help potential customers find and remember your business and should reflect the personality of your organization.

Don't put your dreams of financial independence and doing what you love on hold until the world starts turning in your favor; start planning for your future today.

Courtesy of ARAcontent