LANSING—Small-business owners can’t fly by the seat of their pants anymore, a business coach says.

They need to be smart and savvy to survive this economy, said Dawn Drozd, who also owns a small business in Shelby Township.

The world of large corporations is different than the world of a small businesses, said Drozd, who has a background in corporate sales marketing.

Her first business was a successful hair salon but the bakery she owned for seven years proved a struggle.

“I didn’t know why it didn’t work,” Drozd said.

She learned that it takes more effort in sales and marketing to successfully operate a small business.

Drozd said she became a business coach to help educate other owners.

“If they’re ready to take action, then I want to work with them,” Drozd said. “The industry doesn’t matter.”

The shrinking automotive industry presents a challenge for small businesses, said Don Morandini, director of the Macomb County Small Business & Technology Development Center in Mount Clemens.

In a way, the large automotive companies spoiled Southeast Michigan because they provided so many job opportunities, Morandini said.

The companies’ need to reduce overall costs has negative effects, he said, as jobs are cut and industry-related enterprises are no longer needed.

Lil Adams, executive director of the Sterling Heights Area Chamber of Commerce, said local automotive-related businesses are struggling, especially with finanacing.

The trickle-down effect hurts everyone, beginning with structural changes in the automotive industry and hitting the small manufacturers that supply the Big Three, General Motors Corp., Ford Motor Co. and Chrysler Corp., she said.

Adams added that the banks are affected, too, because when money is so tight, many banks can’t lend enough money to small businesses that depend on loans for equipment.

Adams said manufacturing jobs geared to the automotive industry were the base of Southeast Michigan’s economy.

But Morandini said manufacturing jobs don’t need to be automotive-related. Manufacturers can focus on aerospace, medical supplies and consumer goods.

“We don’t need to abandon the automotive industry, we just need to transition,” he said. “We have a real strong manufacturing knowledge base.”

Rep. Kim Meltzer, R-Clinton Township, agreed on the need to focus on other type of jobs but also said the state shouldn’t lose sight of its of manufacturing capabilities.

“We have to fight for a piece of the pie,” Meltzer said. “We never had to do it before.”

She said that when the state’s automotive industry was booming, it was hard to anticipate that a transitional period would be necessary.

Meltzer owns a small automotive manufacturing business in Romeo.

She said it is businesses’ responsibility to adapt to the new marketplace and diversifying is important to remaining viable and provide jobs.

Morandini said small business owners must know their market and adapt to the changes, including identifying opportunities and ways to improve efficiency.

Ninety-five percent of businesses in Macomb County are considered small businesses, which is typical across the state, he said. They are defined as employing 50 or fewer people.

Small businesses are rapidly growing, Morandini said. They’re more flexible than larger businesses so they can change with market demand.