Going Down?
The rumors of our economy's impending demise may be greatly exaggerated--but that doesn't mean you shouldn't prepare for the worst.
While economists quibble about this year's economic outlook,
Deborah Noland is preparing her interior design firm for the worst,
while hoping for the best. The downturn that began after the stock
market plunge last August recalled for Noland her experience a
decade earlier: Following the 1987 crash, Noland & Associates
barely managed to eke through the ensuing recession by slashing
fees and targeting high-end residential clients unaffected by
mundane economic disasters.
This time around, Noland's Matthews, North Carolina, firm
will be ready if the economy hits the skids. "We've cut
overhead, paid company debts, renegotiated long-term financing and
initiated aggressive marketing efforts throughout the booming
Charlotte market--not to mention launched our Web site," says
Noland, 47. "Whether we're heading into a recession or
it's just a momentary dip on the economic roller coaster,
I'm pulling out all the stops."
Similar views have been voiced by a growing number of diverse
business owners who, until now, have known nothing but a vibrant
economy, which hasn't helped equip them for the potential
economic downturn ahead. So just how might this downturn impact
entrepreneurs and what can you do to protect your business?
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"[1999] is going to feel particularly bad for businesses
because we've experienced such good economic conditions for the
past five years," says Mark Zandi, chief economist for
Regional Financial Associates (RFA), a research and U.S. economic
analysis provider in Philadelphia. "We've had double-digit
growth for much of the recent past, and we'll see only marginal
profit gains in 1999, so business [owners are] going to feel that
the environment has changed dramatically."
Paul DeCeglie, who is personally opposed to recessions, has
weathered more than a few economic storms in the quarter century
he's been covering business and economic issues for the
American Banker, the Journal of Commerce, Entrepreneur,
Business Start-Ups and other business publications. You may
contact him online at MrWritePDC@aol.com.
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