As I write, the economy is strong. Yet, as we all know, everyboom is followed by a bust. Every up cycle is followed by a downcycle. So when things are good, that's the time to prepare forwhen things will be bad.
Over the years, I've seen entrepreneurs make three mistakesduring boom-and-bust cycles. The first mistake is made when timesare good: Entrepreneurs begin to spend. With increased confidence,they expand their businesses, hire more people, buy bigger houses,lease new cars or have more kids.
The second mistake occurs when the economy shifts and businessslows down. Suddenly, confidence is shaken, and entrepreneurs beginto save. Cutting back only causes the business to fall faster.
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