Categorized | Business

Entrepreneur

The Other Shoe

By Tom Irmen

Few of us, particularly small business owners, will forget the “Great Recession.” It taught us many valuable lessons, including that this recession was very much different from past recessions. In fact, many Americans are still reeling from its aftermath. However, there’s no denying that areas of the economy have improved significantly and that most small business owners are experiencing the positive impact of this very slow economic recovery.

Recently, however, there have been reports of reduced economic growth internationally with Chinese and European economies expanding at slower rates than originally forecasted, and we have begun experiencing significant volatility in our own equity markets. So just what does all that mean? Your guess is as good as mine. Even the experts can’t seem to agree. But one thing is for certain – people don’t like uncertainty.

My biggest concern is those entrepreneurs that responded slowly to the recession of 2007 may overreact to this current uncertainty. In other words, we risk overreacting, which could result in a renewed slowdown of our own making.

If your small business is built on a solid economic foundation and is following a well-thought out marketing strategy for the future, you have very little to fear. In fact, I can name companies that actually prospered during the last recession while their competitors floundered, and others failing altogether.

The real question confronting small business owners during periods of uncertainty is whether they should remain on course or assume the worst and “pull back.” There is very little evidence that those businesses that pulled back during the most recent recession prospered.

If the recent uncertainty in today’s marketplace has you wondering whether the other shoe is about to drop, your response to this uncertainty could produce unintended but far reaching consequences for your small business.

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