The economy's hit a rough patch, and you're trying to stay the course with your small business. It's perfectly understandable, right? It isn’t complicated - but it's hard. It's hard on you, it's hard on your family - and let's face it, it's hard on your business, too. You need to make money. You need to save money.

There are only two ways to do this. Either increase your income, or decrease your expenses. If we could just snap our fingers and make more money, we'd be snapping and dancing all night long, trust me. We'd all make a night of it together. There would be nothing more powerful and optimistic than a group of entrpreneurs filling a dance hall snapping their fingers and swing dancing. It hasn't happened yet, and the stock market's currently taking a beating – we haven't seen the stock brokers tapdancing in a long time, either. Until that day comes again, we've got to be realistic – instead of focusing on a drastic increase of income, we've got to decrease our expenses.

Lucky for us, our work from home jobs come without the cash for commuting or the expensive wardrobe. However, it's best to stop ordering from Amazon and start taking trips to the local library for a while. That's right – curtail some expenses you really don't need! No more takeout on Fridays, either. Try to start eating only what's in your pantry. These things add up, and as a home-based business, especially a sole proprietor, your domestic budget and your business budget walk hand in hand.

Don't upgrade software every chance you get. In face, start looking into open source software – such as Open Office, which are compatible and always free, instead of using the big boys such as Microsoft. These programs have some great features such as saving in many file formats – from .doc to .pdf, and they are relatively easy to use. And, did I mention – they're free?

Use effective advertising and marketing – and don't fall for every “new advertising method” that comes out. There are hundreds of “pay per click” gurus out there that will wipe your credit cards clean with Google Adwords using every keyword imaginable to get clicks to your website – but will those clicks convert? Don't waste money on getting clicks – use common sense on what has worked for yourself and others. Marketing your services is more important that marketing your website – so make sure your advertising actually reaches the people you are selling to. Don't go for clicks – go for customers.

Take full advantage of free advertising to build the business and the credibility. There are free ways to advertise that are almost as effective as PPC advertising and paid-for advertising, including writing articles for other publications, starting blogs, posting to others forums, and soliciting reviews of the services and products you sell. Don't spend money on advertising that doesn't work when you can simply build a reputation that stands.

Remember – keep things simple in a small business – and look at the big picture. If you overextend your funds, there won't be any money left for you tomorrow. You cant to keep cash flowing in, not out – so look at what you have to gain by every dollar you put out, realistically. Don't look at what your competitor is doing, but the guys that are two steps above you – would they see a return on the same thing? Did they do something similar in the past? Target's top guns have written plenty of articles and sent out plenty of press releases, newsletters, and other marketing material, but they waited a few years before they invested in Google Adwords – and they were already a household name. So why should YOU skip the traditional advertising phase?