As money gets tighter during this recession, many recruiters are looking for ways to cut costs and brace themselves to ride out the storm.  Here are a few tips that can help recruiters survive and even benefit from this recession:

1.    Keep the cash flowing.  Cashflow is the most important factor in determining whether a business survives or dies.  Recruiters need to watch their cashflow carefully to make sure that they have enough revenue to pay for their expenses, especially if they experience a sudden drop in revenue.

2.    No more Mr./Ms. Nice Guy.  It is time to get tough with clients who are late paying their bills.  If you have clients who have failed to pay as agreed, don't let it slide.  Institute penalties for those clients that pay late and enforce your rules.  Clients who pay late can negatively affect your cashflow which can jeopardize the survival of your business.

3.    Operate a lean recruiting machine.  Cut out any excess expenses in your budget.  This could include unnecessary supplies, or employees who are not paying off in terms of value.  As you make these choices, you must careful. Don't eliminate services or put off innovations that can help SAVE or help you MAKE money.  Cut, but cut wisely.  

4.    Nurture existing client relationships.  It is cheaper to keep current clients than to find new ones. Make sure that you are offering real value to existing clients and pay attention to their needs. Look for ways that you can help to expand or improve their business.

5.    Stay away from financially weak clients.  Assess the financial wellbeing of all your current clients and potential clients.  If it appears that a current client is on the verge or bankruptcy or is experiencing financial difficulties you may want to consider not extending credit to them.

6.    Increase your sales and marketing efforts.  Sales and marketing is an area you DO NOT want to neglect especially during a recession. Take a close look at your marketing efforts and determine what is bringing in new business, consider increasing your energy or expenditures in that area.