Looming layoffs. Declining home values and residential construction. Mega-banks and Wall Street firms on the ropes.

The skittish national economy is beginning to give the Puget Sound jitters. And for business owners in Ballard, transportation issues add another layer of challenges and uncertainties.

The question is: What can you do about it?

The answer is: Plenty. And many of the strategies are just good business practices that make sense anytime.

Whether gas prices are $1.99 or $3.99 a gallon, it's important to be prepared for unexpected interruptions in the way you do business.

Currently, Seattle is somewhat insulated from the economic downturn being experienced by the rest of the country. In part that's because the declining dollar has helped our predominantly export-based market. But rising fuel costs are likely to affect exporters eventually.

Some of the affects of the slower economy are hitting home now. In addition to highly visible layoffs at some of our home-based corporations, smaller businesses that work with residential builders or sub-contractors are feeling the squeeze on the housing market.

In addition to potential declines in the economy, businesses in West Seattle and Ballard are faced with transportation challenges.

Although a final decision on the fate of the Alaskan Way Viaduct has yet to be made, preparation for construction is underway. Washington State Department of Transportation soon will begin moving the electrical lines attached to the lower deck of the viaduct, which will require periodic road closures from approximately South Massachusetts Street to Railroad Way South. That project is expected to take a year.

Currently, the section of road that connects the West Seattle Bridge to I-5 north is under construction. And eventually whatever is going to happen with 520 will likely snarl traffic along I-5.

And then there's the continuing, burning question of what will happen with the viaduct and how long it will take.

The one thing we know for sure: Local businesses will have a harder time getting customers and goods in and out of West Seattle and Ballard.

Patty Mullen, executive director of the West Seattle Chamber of Commerce, explains, "Any disruptions to the expedient north/south route offered by the viaduct have an impact on businesses, especially when they last several years. Business owners can expect fuel costs to increase because of delays. Staffing configurations may be impacted. There will be a trickle down affect."

All of these challenges become that much tougher when fuel costs are high and consumers have less money to spend.

How to prepare:

- When you live on an island, as we essentially do in Ballard and West Seattle, the mantra of a successful business isn't "location, location, the location" - it's "relationships, relationships, relationships."

- Business owners in Ballard and West Seattle need to continually seek opportunities to build loyalty and valuable networks. These are still largely word-of-mouth communities and your best customers may be at your doorstep. Give great service; go the extra mile. And don't forget to support your fellow neighborhood businesses.

- As those of us who waited out the closure of the West Seattle Bridge can attest to, the shops down the street can prove to be your lifeline.

Also enhance your upstream and downstream relationships. Your suppliers and distributors may see market trends quicker than you do. Make sure you have conversations with them about how they and you might expect to respond to tough times or major disruptions to your transportation routes.

Build your relationship with your banker as well. There has been a lot of focus on the troubles facing the large, national institutions, but our local market is fairly strong. Those of us who live and work here know that. Banks that are focused on local businesses and families reflect the strength of the communities they serve.

While it's important to be cautious, business owners don't want to pull back so far they miss opportunities. If you have a good idea, along with a solid track record and sound business planning, you can still find financing. Be prepared to participate - 100 percent financing is not likely - and to build a full banking relationship, which includes deposits as well as loans.

And since in our region transportation is a major issue, it's good business planning to stay abreast of upcoming challenges and prepare for them. Talk with your employees and explore options such as carpooling, staggering shifts and working from home.

Get involved in the decision-making process. Local organizations such as the Duwamish TMA are pushing for the development of a guiding body to oversee and coordinate the impact of all the transportation projects coming down the road.

Above all, work now to create loyalty. Even in tough economic times people still spend money. Make sure you're the person they go to.

John Huey is a senior vice president and market manager of Viking Bank as well as co-chair of the Duwamish TMA. He can be reached at johnh3@vikingbank.com or 658-4007.