5 Small Business Tips for an Uncertain Economic Climate

From the blog:

5 Small Business Tips for an Uncertain Economic Climate

When looking at the U.S. economy, the only thing that can be said with certainty is that we are in a period of extreme uncertainty. Consumer confidence hit a 30-year low as consumer spending hit a record high for the year. Wall Street is announcing record corporate profits while main street is suffering. And corporate CEOs are receiving massive incomes at a time when the country has unacceptably high unemployment rates.

We have entered the Bermuda Triangle of economic indicators, where our economic compass has gone haywire. The U.S. stock market has entered a period of extreme volatility. Stock indexes lost over 5% of their value the day after S&P’s debt downgrade, only to fully bounce back a few days later.

Eventually, these extreme market fluctuations will subside. Until that occurs, however, the market’s volatility will ripple through the economy with very real, albeit uneven, force.

These wild fluctuations in the stock market are causing consumers to tighten their spending, thus causing increased pressure on small businesses. While large companies can weather the storm by dipping into cash reserves or discounting prices, the neighborhood business has no such buffer.

Small businesses, already squeezed for operating capital by vendors and lenders, will need to adopt methods to bring stability to an otherwise unstable and uncertain landscape.

Here are five such tips for doing so.


~ by WPA Staff on September 9, 2011.

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