Buckle Down A slow economy doesn't have to spell trouble. There are always new ways to move forward.

Troy Wragg, 26, and Amanda Knorr, 25, co-founded real estate development firm Mantria Corp. three years ago with $5,000 and an interesting business proposition: The company would pay more than the asking price for properties if landowners agreed to be paid after Mantria sold their land. The business model worked--the Bala Cynwyd, Pennsylvania, company reached $15 million in sales last year.

The U.S. housing market has changed drastically since 2005, however, and Mantria is experiencing the market aftershocks caused by the credit crunch and skyrocketing adjustable-rate mortgage payments. ARM resets "will definitely affect our business in real estate and real estate finance," Wragg says.

Now the 32-employee company is adjusting its business model to meet the demands of a tougher business environment. Mantria is diversifying into property title and focusing on properties in lower-priced geographical areas. It's also offering buyers additional financial concessions, which will decrease the company's profit margin by 5 percent this year. "That 5 percent is a haircut we've taken to make sure the buyer is getting more out of the deal," Wragg says. "We'll buckle down by taking less pay."