We have enjoyed a long period of economic growth, albeit often at a slow rate. But eventually, it has to come to an end.
Even though there’s no firm predictions, businesses may want to prepare themselves for an economic downturn anyway. If nothing else, it’s been a long time since we’ve experienced a recession.
Risk management expert Michael Evans, writing for Allbusiness.com, has a few key moves businesses should be prepared to make if the economy heads south in 2019.
“A downturn, caused by the natural ebb of the economy or by a shock such as a geopolitical crisis, is always a possibility, bringing back conditions we remember all too well…,” says Evans, managing director for the Newport Board Group. “Even if a recession doesn’t come to pass, your company might have its own downturn this year, caused by a new competitor or new substitutes for your products and services.”
The plan includes managing liquidity, protecting what you do best, and getting smaller if necessary.
The point, Evans says, is don’t wait until the bad news arrives to start thinking about what to do. Or in his words, “Why not start the new year off with a resolution to do some contingency planning for the possibility of a downturn later this year?”
