Adam Boatsman - 1.31.2010
I get asked a lot whether or not we're going to experience a double dip recession - and if so - what to do about it. My answer to both these questions is "I don't know" and "nothing different from what you should already be doing." You, as a business owner, can't control whether or not we'll have a double dip. Generally most economists I follow (I really like - Brian and Alan Beaulieu) don't think we will. Regardless my personal feeling is that until we get to 8% unemployment we're not going to feel good.
So - what should you do?
- If you haven't figured out how to be profitable on your current sales volume - you need to figure that out.
- Ensure your banking / lending relationships are sound.
- What if we don't double dip - what if we rebound? Evaluate working capital to ensure that you have enough available should we have a surge!
- Relax - this is the most important - keep a level head. You can't control the economy but, as captain of the ship - you do set the tone of the organization. Every economic cycle ends - eventually we'll feel it as most economists and indicated that we have experienced a technical end - see the point about unemployment. Figure out some personal goal (e.g. get fit, take a vacation) that will help you reduce the stress and the pressure over the last two years. You can lose all your money but if you lose your health, it will fail you.
Attached is a quick link to an article in the Charlotte Business Journal.
