Many business owners worry about a recession happening and how it will affect their business. New business owners need to understand the economy enough to know that their business will be affected BEFORE the recession really hits the rest of the economy, and so they need to be prepared.
Make sure forecasting is something you do for your business or ask your accountant to help you with. Look for growth in real wages, which drives consumer spending, which accounts for more than 2/3 of the United States economy. Consumer spending is a huge indicator of what is happening, it also drives corporate profits which in turn affects the stock market.
Look for changes in the economy that will affect your business and remember, every business is affected differently and at different times during the cycle of a recession.
