Since the inception of this blog we have been preaching the mantra “we refuse to participate in the recession”. Just when we thought we could relax and start to enjoy the ongoing recovery, the media, economists and even business owners are talking about a Double Dip recession. Do we need to update the mantra to “we refuse to participate in the double-dip recession”?
Just take a look at some of the recent news:
- National Federation of Independent Businesses small business optimism index dropped to a 3-month low
- Vistage CEO Confidence Index showed flat hiring plans and reduced growth figures.
- Fed Officials see rising risks, trim growth forecasts
- Retail sales dip indicating a slower recovery
The media plays such a big role in how business owners make decisions and even more importantly how our customers make their buying decisions. So, it’s not all that surprising with news like this floating across the internet that fears of a double-dip recession are out there.
Just like with any challenge we face inside or outside of our business, these events really don’t have any inherent meaning other than how we choose to interpret them and what actions we decide to take as a result. So that begs the question – what action do we take? How do we avoid getting sucked into the double-dip negativity?
Here are just a few actions you can take today to say no to a double-dip:
Even though we are technically going through an economic recovery, prices are pretty good for business needs. Whether it is labor, equipment, or real estate, take advantage of the favorable prices and terms while you still can.
Shore up the financials
You can’t lose with this one. If indeed we do go into another recessionary period, you’ll be much better off if you invest in assets that make you money, pay down debt that affects your credit scores and ability to borrow, and trim any unnecessary expenses that aren’t providing the return they should. If we bounce off of a double-dip and continue with the recovery, you’ll be in much better shape by having gone through this exercise.
Leverage tax savings
Combine the savings that are currently available on equipment you need for your business with the available 2010 Section 179 tax deductions. Don’t wait until the last week of December to realize that you never took advantage of up to $250,000 in deductions.
Virtually all small business owners have heard the phrase “necessity is the mother of invention”. If you plan for a double-dip recession, you can be in a no lose situation no matter what direction the economy moves.
Learn from past experiences
Guess what – you just made it through a recession! What did you learn? Was this the first recession your business has been through? You now have a a fantastic set of experiences to reflect on and learn from. Don’t waste them. Take a thorough look back at what things worked well and didn’t work so well so can you adjust as necessary if things take a turn for the worse.
Let’s hear your lessons learned from the previous recession and what you are doing to take advantage of the opportunities out there today.
Photo credit: peyri