Business Planning for Recession

The last Businomics newsletter had a checklist for business planning for recession.  Here it is:

  1. Assess your vulnerability to recession
  2. Sketch out contingency plans
  3. Develop an early warning system
  4. Build flexibility into the business to enable future cost-cutting.

This is a sketchy summary of several chapters in my forthcoming book.  (Stay tuned for ordering information.)  If you think your business can’t wait, call or email me and I can work with you on getting ready.

However, I AM NOT FORECASTING A RECESSION right now.  I do believe that every business, government and non-profit executive should be doing some contingency planning right now.  The odds look like one in four of a recession beginning in the next 12 months, with some of my economist colleagues thinking more like 70% probability.  Check out Nouriel Roubini’s posting for an explanation of the really dismal scientists’ view.