Admit it. As an entrepreneur it's hard not to get freaked out by the continual stream of negative news about the effect the economy is having on small business. Talk of inflation, rising cost of goods, and closures is enough to make any business owner or wannabe curl up in the fetal position and cry. The NY Times, however, offers a little silver lining on what's become a big black cloud this week in a carpe diem piece on getting through the slump. While a lot of their suggestions are obvious ("coddle your best customers") one point is especially worth repeating:

"In hard times, it is tempting for business owners to make wholesale reductions...But that could deepen the pain. For example, they might eliminate buying equipment that could make them more productive or generate work."

You heard it right. Cutting certain costs or severly reducing key expenses is a bad idea. Example: you lay off members of your sales team to save money. But in turn, sales drop, and profits tumble. On the flip side, there are actually ways you leverage a bad economy to your advantage. Another example: rather than cutting your advertising budget, look for remnant ad space that competitors have dropped. Negotiate recession deals like a long-term lease with your landlord for a break on rent.

If you focus too heavily on cutting costs you are inherently playing a zero sum game.