In the Telegraph today it was reported that there is now the largest number of insolvencies in at least half a century.  A record 35,000 people were declared insolvent during the three months to the end of September, the largest number in at least half a century. Small businesses are particularly at risk during this continued recession, so what can be done about it?  Everyone has heard about marketing your way through and out a recession but what can you do if you've only really thought about this now?

Some of the main causes for going insolvent are:

• Keeping too much stock and a lack of cash
• Not responding to what competitors are offering
• Not researching the area of business in enough detail
• Low investment or being under capitalised

So don't hang around, see what you can do about any of these problems before they arise.  If you have too much store and / or a lack of cash, think about creating a promotion to release some of the equity you are holding in your stock room.  Be aware of what your competitors are doing, not only must you make sure you are more visible than they are but you've got to keep up with the competition.  Also, your competitors’ businesses may be failing - make sure you are the company standing out incase their clients are looking for a new supplier. Offer special incentives as early as you can for them to try your services before they go hunting for alternatives.

Make sure you are investing in the right areas of your business - don't cut back in vital functions or those that will get you through the hard times.  Some companies make the mistake of cutting marketing budgets at a time when you should be taking advantage or lower marketing costs and making your company the one of choice.  Save money by managing your business well and making your processes more efficient. 

See the Promotr Marketing in a Recession page for more tips.

Yesterday a German researchers found that those sports teams who wear red tops, jackets or clothing score 10 per cent more in any competition than if they were in another colour. But why?  Well, experts believe that red could make individuals and teams feel more confident as well as being perceived by others as more aggressive and dominant.  Mostly being Chelsea fans at Promotr, we're fans of blue, but there is little disputing Arsenal, Manchester United and Liverpool have been pretty successful in the past and as reported in the Telegraph, even England's victorious World Cup team in 1966, led by Bobby Moore wore red, instead of their usual white, and have not won a World Cup or European Championship since.

It's the same for business and what your potential customers perceive through your branding and marketing materials. But it's your company so ultimately, the colour reflects on you and should be something you are happy with.  Here are a few things to think about.  

'But all environmental companies have green'  — colours are not industry specific necessarily but some may be better suited for some services/products than others. You should aim to pick a color that will represent your brand’s personality best as it's not necessarily about what you do, but who you are.  Is your company energy important to you - then yellow is a more energetic colour that also makes you think of the outside.  On the other hand, there are colours certain industries should avoid.  If you in the restaurant trade it is worth noting that blue and black suppress appetites whereas our topical red makes food more appealing and influences people to eat more.

'Our printer says we should have one color' - long gone are the days of just single colour printing.  Some brands like Google and Windows go with several colors to represent variety.  Just try to choose one's that actually go well together and don't strain your eyes.  The most legible of all color combinations are black on yellow and green on white followed by red on white so it is no surprise that you find these on traffic lights and signs.

'We've changed our minds' - setting a new brand is not something to be done lightly and certainly not abandoned lightly either. If you are not sure about the colour anymore then you probably did not choose well int he first place, but beware, changing your brand, often or quickly will hinder building your brand and confuse existing customers.

You may have seen the MI6 disaster this week.  The new head of MI6, Sir John Sawers, is at the centre of a security breach after his wife published family holiday photographs and other personal details on the Facebook website.  A classic example of not using social media wisely.  As a small business using social media can be a quick win for boosting and maintaining business.  Sites such as Facebook and Twitter mean you can display everything from photos, videos, discussion forums, personal and professional profiles and links to other online materials or news. And these can all promote your company and your brand.   But be careful not to get it wrong, here are a few simple rules to help:

• Make sure your social media is still targeting your audience - some social media sites are geared toward teens and young adults, while others cater to business professionals 
• Consider your demographics and tailor your marketing messages to appeal to different demographics, the same as your would for your traditional marketing materials
• Think about mixing business and pleasure - anyone can be found online these days, make sure you have made a decision about what you are happy being online
• And finally, be professional at all times - it can be easy to get sucked into the less formal arena of social media

Today a couple from East Yokshire was featured in the press after being given 24 toasters for their wedding gifts! Imagine coming back from honeymoon and having your wedding gifts arrive only to discover 24 identical looking boxes each containing a Tesco's 2 slice toaster?  It turned out to be a bit of a joke - the groom had been asked on his stag night by a friend what he'd like for a wedding present, and he said he'd like money or vouchers as he didn't want to end up with a whole load of toasters.  His 'friend' then took it n himself to spread the word that the toaster was the key gift and voilia!  Weddings are always a hard one though - especially nowadays when so many people who are getting married have been together for years or at least been living away from home.  It seems that gifts to actually help set up your first home is something a bit of the past.  I didn't get married late but still by the time we'd decided to get married, we already bought a house and most of the things to go in it.  We asked for no gifts or gifts to charity instead.  However, we found that some people ended up still wanting to buy us proper things and ended up having to create a wedding list anyway because people wanted or expected to buy one for you.  And people want to get you something you want and something useful.  But as the bride and Groom, my hubby and I thought it was saying about who we are to ask only for charitable gifts.  It can be the same thing with gifts in business.  Corporate gifts, charitable giving, promotional items.  Got to get something useful, but at the same time if you want a gift to work it has to be part of your brand.  If it is really going to enhance a customer base or make a potential customer think of you - but it's also got to be suitable. There is no point sending a data stick to a builder who doesn't use IT or branded pens to a paperless office.  So next time your doing gifts - have a think about it.  Better to get fewer gifts that work and bring back business or enhance your brand, than many that don't.  And for those of you who are interested, here's a quick snap shot of my wedding. ;-)

Isn't it amazing how a celebrity can create a brand? Yesterday David Beckham launched his new range of designer underwear to hundreds of screaming fans that gathered outside Selfridges in London.  Getting a glamourous star on board is one way of boosting a product but David Beckham is a brand in himself. For many small businesses marketing the owner is as important as marketing the small business. Personal branding maybe something that happens naturally for some people, but others really have to think about it.  For those of you who what to catch a glimpse of the David Beckham brand he's on the BBC here.

It can be difficult to look at the economy with a 'the glass in half full' attitude and even the most optimistic of us can feel it's all doom and gloom for small businesses marketing themselves at the moment. But things look like they are on the upturn in recession-hit Britain.  I think small businesses are one of this country’s little-known success stories. The Happy Small Business Report we collated shows the positive impact they have right across the country. Small businesses make up a substantial proportion of the UK economy and they can play a major role in steering us all back to better times. And acting positively in a recession is the key to surviving - and even thriving – through the recession. Did you know that most small firms not only expect to make a profit but are looking to grow their businesses and invest in training staff in 2009?