In a bad economy, the first inclination is cut back on marketing and advertising. That is a big mistake, says Ira Davidson, director of the Pace University Small Business Development Center: "Now might be a good time to increase spending because your competitors, in all probability are automatically saying, 'Times are tough; I have to cut marketing.' You may be able to pick up customers or market share because other people are cutting back."

Don't be penny wise and pound foolish in today's economy. If you cut back on marketing and advertising there isn't any chance that you will persevere. You have assured the demise of your business. If, however, you advertise more effectively (working with others instead of solo), you will succeed regardless of what is happening, including this current recession, for people are still buying, they are just being very choosy. If you "disappear" it will surely look as if you are one of those that is sending people out to stand on street corners with a "Going out of Business Sale...Everything has to go! 80% discount, including the fixtures!"

The old adage: Out of sight, out of mind is a truism. It will end up costing you even more money to recoup the clients you've lost when the market improves, if you close up shop by not advertising when it's slow. It would be far better for you to hold a special event to sell off your overstock at a discount, than to cut back on advertising in a bad economy and hold to your pricing, trying to count every penny.

This is frankly one of the 24 major faux pas I describe in my blog for new entrepreneurs: http://smallbizwisdom.blogspot.com