Five Mistakes to Avoid During a Downturn

Companies make mistakes all the time. However, in an economic downturn, avoiding the big ones is crucial. Small business owners tend to react to bad news impulsively, but they should take the long view and pace themselves. To get funded, stay funded, or just simply stretch your cash, you'll need to avoid the following common mistakes. If you've made them already, it's time to course-correct (BusinessWeek.com, 5/7/07), meaning spot mistakes and take action to fix them. Right away.

1. Hasty Hiring. Result? Bad hires who are costly and time-consuming. It's better to try out new people as contractors first (BusinessWeek SmallBiz, October/November, 2007). Then after you've ensured they fit within your organization, bring them on as permanent hires.