My answer to Quora: For any active working individual in society, talking about “the Economy” is a regular subject around the coffee table: How the oil price keeps on diving, when the interest rate will creep up again, or what the housing prices look like in the coming year. People engage in these talks because, more often than not, it directly impacts their job security, income, and net worth, and… it’s also just fun to talk about. While “the Economy” can be a subject of small talk for some, it should be a serious topic for all small business owners.
Although macroeconomic fluctuations may not be directly felt by small business owners, major economic shifts such as the Great Recession during 2007-2009 can be detrimental to even the smallest businesses. Consumer spending is curbed, funding is tightened, and a vicious cycle of unemployment pans out. Needless to say, we’ve witnessed numerous companies small and large, new and old, close their books and disappear into history. Fortunately, many others survived the downturn and are thrived during the bullish market that followed. What did they do right?
Here is a great article to check out: Preparing for Fluctuations in Your Small Business During an Uncertain Economy