If you’re the type of person who pays attention to the economy, you’re probably familiar with the grumblings of an economic downturn making its rounds through the financial media in recent months. Treatment of the issue can range from dismissive to downright apocalyptic, depending on who you ask, what they do for a living, and how they’re feeling that day. But regardless of the tone, the staggering volume of chatter about economic woes can leave a small business owner feeling uneasy. By Google’s count, nearly 50,000 articles have hit the web in the past day alone containing the menacing keyword, “recession.”
IMAGE PROVIDED BY: ALEXTHEPINK First of all, don’t panic. Just because there’s a buzz about a recession doesn’t necessarily mean there will be one, as the experts have at best a spotty record for predicting these things. Also, resist the urge to use the stock market as an indicator; things are usually not as bad—or as good—as fluctuations in the S&P 500 would indicate. But this exercise is really about the ‘what if’’. What would happen to revenues? Would you need to make wholesale changes to the way you operate? Coming from a background in equity analysis, I answered these types of questions for the public companies I covered. Here are some key things to think about when evaluating your own company’s sensitivity to the overall economy:
To read the full, original article click on this link: How Sensitive is My Business to an Economic Downturn? | OpenView Blog
Author:Nick Petri
