A New Year is a time for reflection on the year just passed and hopes for the year ahead. 2008 was a remarkable and turbulent year for all businesses and retailers in particular and the government ended the year with a number of drastic measures designed to kick start the economy. But confidence is at an all time low and the situation is still so very volatile that it is difficult to see 2009 with any clarity.

Those of us who have seen recessions before know that they are painful but they will end, sooner or later. Kitchen, bedroom and bathroom retailers have to seize every opportunity to assess the profitability of their business and continue to invest so they emerge fitter and stronger when the economy improves.

This is no easy task, especially for small businesses at risk from many different directions, a housing market that has collapsed, a banking system that refuses to lend, customers have lost all confidence and a government that does not understand small businesses.

Difficult economic conditions and downturns do however bring opportunities. Tough economic conditions will flush out the weaker firms, providing more customers for those that remain and the possibility of expansion into new geographical areas or markets for stronger companies.

So here's some possible New Year Resolutions for retailers from the KBSA:

1)  Identify new markets. If you only sell kitchens, look at diversifying into bathrooms and/or bedrooms. Bedrooms are quicker and easier to install than kitchens and bathrooms are the second most popular room in the home for improvement.

2)  Tap into the grey market. These customers understand the benefits of buying quality and service, are prepared to pay for it, and are more likely to have the money to spend.

3)  Review all the costs of your business. Can you buy the supplies and services you need cheaper. Are you taking advantage of the benefits of association membership, financial discounts and special deals offered?

4)  Differentiate your business from the competition. The KBSA badge is increasingly important in a difficult market as consumers look to buy from a reputable retailer that offers insurance backed warranties and a recognised standard of service.

5)  Cash is king. Review how and when you collect your debts and the same for money going out to buy products and services.

6)  Promote your business more. Consider other promotional activities, other than advertising, that will keep your name in customers' minds. There are many low cost opportunities to engage directly with past customers via mailings, showroom events or telesales.

7)  Keep your showroom fresh and alive. Continue to introduce innovative products.

8)  Know who you are dealing with. Carry out rigorous financial checks on all your suppliers so that you are not left with having taken orders and customers money for products that do not appear because the company has gone into liquidation.

9)  Join the industry campaigns to lobby government for change such as cut the VAT and lobby your own local MP for more measures to support small businesses, and less red tape.

10)  Network more and consider working alongside other businesses to create new opportunities. We have seen this in the housing sector where agents and solicitors are actually working together to find innovative ways to do business for mutual benefit. For the kbb retailer, interior design is the obvious choice, and a new room often spawns related purchases - adding value to the overall spend.

I have long maintained that the markets are split into two distinct sectors - one driven by price (enjoy the deep discounts of today, as they cannot last for ever - or else more retailers will disappear!), and the other driven by service.

With the emerging 'grey' market, the good independent retailer is best placed to exploit this, and should dust off all those manuals about excelling in customer service. The customer is king is a well known euphemism, but never has it been truer, so your dusting efforts will pay off - so why waste time? Get dusting!