If we all took notice, none of us would bother getting up in a morning. As serious as it is, it could be so easy to talk ourselves into liquidation by blaming all our trading problems on the ‘recession' and missing the real issues. Times are hard, but our destiny as manufacturers and retailers is still down to us.

At Little Helper we made a decision in the early days to focus our core business on nursery essentials, as well as the nice-to-haves. This is why we have put so much effort into the FunPod Highchair because a Highchair is a nursery essential. At times when cash is tight, the consumer will focus on what they need rather than what they would like.

In a way, fulfiling consumers' needs first and desires second is a way of ensuring demand. I am not saying that we should all focus solely on the essential items because clearly there is a market for non-essentials, but what I am saying is that in any successful business model there has to be a balance in order to make a business as recession proof as possible. After all, how many toilet roll manufacturers or oil companies have you heard of going bust lately?

Of course, product mix is only one factor in the success of a business; one of the others is cost control. As companies grow, so do the costs of running them, but key to the long-term success of that business will always be keeping a tight control of the costs. That is easier said than done in an age of international buying at a time of exchange rate volatility.

At Little Helper HQ, we believe it is vital to differentiate between costs and investments, and sometimes this is a fine line. Cutting costs that have a positive impact on your business, such as key people, product development and marketing can have a disastrous effect on a business. In the current climate it is very easy to focus purely on the current situation and getting from A to B, and to a certain degree that is right. At the same time however, we need to be working on getting to C once the short-term economic problems have subsided, which of course they will.

But for us it is about thinking outside the box and using all the contacts and resources we have to create effective sales and marketing strategies whilst keeping costs in line with business plan.

First thing that usually goes is a marketing budget but we believe this is foolhardy. Marketing is not just about advertising - it is about creating awareness and there are an awful lot of things you can do to generate such awareness without spending a lot of money. It's about partnerships and working with these partners to maximise opportunities.

As a newcomer to the nursery industry, we are small but actually a very tight ship. By people having to multi-task and having knowledge of a number of areas of the business means that we have very knowledgeable staff that can react quickly to situations. By working in an open-plan office, it fosters great communication and negates duplication of work, meaning that we are all working towards a sales, sales and more sales. We have a simple rule when we look at an action or activity we carry out, - if that action or expenditure does not directly or indirectly result in improved sales, forget it.

This is where we might well spend money on product development or marketing at times when other companies do not. The impact would be increased sales due to increased customer satisfaction. And let's not forget, customer satisfaction is key to everything we do.

The last few months have been nerve-wracking for us all in manufacturing or retail but I do believe there is still disposable cash around. However consumers are being more cautious about what they spend it on, but the nursery industry is probably a lot more recession-proof than a lot of other business sectors in the UK.

As a parent I know that in a situation where I had a limited budget I would always ensure that my daughter's needs came before mine, and luckily for our industry that is also the psyche of the great British public. People will always be prepared to spend money on their kids, but now they want more for their money. They want products that will last longer, products that offer more value for money, and products that are multi-functional.

Our research shows that product multi-functionality is a growing area of the market and a huge opportunity. The FunPod Highchair, together with further products due to be launched in 2009 by Little Helper offer the consumer class leading multi-functionality and value for money.

What happens next? Unfortunately there will be manufacturers and retailers that will become victims to the recession but some will thrive as the industry polarises. My advice to those retailers is to ensure that customer service is second to none. And my advice to other manufacturers would be to support your retailers and work hard with them.

It is important to keep driving things forward whilst being prudent. I do not think that it is a bad discipline to have and every now and again it is as if things are shaken up for a reason. With less money available, you have to work harder to get that share of voice and think differently. At Little Helper, we are small enough to do things effectively and quickly without any of the red tape that goes with a lot of large manufacturers. And we actually enjoy the challenge.

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