1. Continued economic volatility in 2012. The Institute's research found that 44 percent of small business owners believe that the economy is preventing them from growing their companies. They recommend businesses develop and deply integrated action plans for dealing with the challenges.

2. Access to capital will continue to be tight, and lending practices even tighter. The Institute recommends that small businesses consider where borrowed money can do the most good for the business. Business owners surveyed by the Institute's research indicated priorities included upgrading equipment (91.2 percent); short-term cash flow (81.3 percent); investing in marketing (78 percent); and adding people (60.7 percent).

3. Significant numbers of marginally successful businesses will be pushed to the brink. According to Institute data, 14 percent (or one in seven) of small business owners surveyed said they would probably close down their companies were revenues to drop drastically over the next 12 to 24 months. For sole proprietors, that figure increased to 23.3 percent. Recommended action: Improve productivity. A difficult economy presents an opportunity to right-size a company for long-term success. Small business owners should ensure they have the right people in the right positions so they can focus on growing the business - especially at a time when competitors' market share may be vulnerable.

4. Larger companies will aggressively market to prospects considered "too small" in the past. The Institue recommends small business look for meaningful ways to differentiate their businesses through means such as better customer service, and more customized, localized or cost-efficient services. They also recommend teaming with other businesses to offer a broader range of services.

5. Election-year campaign rhetoric will create an atmosphere of tension and negativity. Small business owners should expect that presidential candidates and members of the media will devote a great deal of time and attention to how "bad" things are, or how "bad things might be." To counteract this negativity, the Institute recommends optimism and focus. ! If small business owners exude a sense of confidence, optimism and focus, their customers and employees will feel it and respond accordingly.

6. Trade-offs and deal-making will characterize 2012. Vendors and service providers will be more willing than ever to trade a degree of their profitability for the certainty of doing business. Recommended action: Cut deals that create certainty for vendors, customers and the business. Small business owners should sit down with vendors and larger customers and offer to make commitments in return for price reductions or better payment terms. This includes meeting with staff, advisors (accountant, attorney, financial planner) and key customers to do a "start from scratch" review of everything that costs - and makes - the company money.

You can read the research findings on the Guardian Life SmallBizdom website. You can learn more about Guardian on www.GuardianLife.com.

If you'd like to share your opinions on what kind of year 2012 will be for your small business, take the our Business Know-How 2012 Small Business Outlook survey. We will be reporting those results on the BusinessKnowHow.com website.