As company spending decreases, some promotional merchandise companies have been hit hard by a decline in the amount of orders being made. It seems that tighter budgets across the board have even forced some companies to cancel or postpone orders at unimaginable levels. It could be suggested therefore that the demand for corporate gifts could be on a downward spiral, and this will indeed remain to be seen in the run up to Christmas and the New Year.

Clearly this forecast does not bode well for business. It is important, therefore, in the run up to Christmas, to ensure that planning is put into place. Make sure that customers are made aware of your products well in advance to ensure that interest is still accumulated and orders are still made.

What does this really mean for the printwear and promotional industry? In broad terms some may say that this is the time to panic, but there must be a calmer approach. James Ellman, president of US hedge fund Seacliff Capital recently said: "When you're in a pit, the first thing to do is to stop digging." Looking forward to the New Year, this idea will have some resonance. The only way to get out of a credit hole is indeed to stop digging, assess the situation and start to unravel where the problems lie. Get in control of the situation by being positive about finance, rather than getting yourself into a panic.

In a time of financial insecurity the most important thing is to be in control of your company's finances. Understand where your money is going and how much will be coming back in. Keep on top of everything by keeping detailed records - organisation can really help if you need to back track an invoice, for example. Understanding your finances will enable you to become realistic. Don't spend money on things which are unnecessary and don't aim for things which you cannot afford.

Being realistic might mean making some savings around the office. Can you cut down on printing or photocopying? Or make a concerted effort with turning off lights and machines at certain times to save on bills?

With this in mind it is also important to remind clients that promotional products are not a luxury and therefore should not be cut back on in a recession. These products are a constant reminder of a company logo or brand - those companies that continue to invest in marketing during difficult trading times have a tendency to weather the storm.

Do not be afraid to ask for help or advice if you need it. When the economic world is unstable, tomorrow may be too late to seek the advice you need, so try and get some guidance as soon as you start to see something going wrong. PROMOTA members can be reassured that they are being supported by a trade association which can offer guidance on good business practice.

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