I woke up yesterday to news reports full of the "R" word. That's right, recession.
Are we in one? Are we about to be?
No one really seems to know for sure, but recession fears are affecting the economy, without a doubt.
- This article from CNNMoney.com describes the impact on media stock sales. The Wall Street Journal quotes former Federal Reserve Chariman Alan Greenspan warning the United States (U.S.) about a coming recession.
- This article from CBC news explains that we face the highest inflation rate in 17 years and the Associated Press agrees.
The turbulent U.S. economy could impact your home business. Savvy home business owners would do well to prepare.
For the home business owner, it will be harder to find business and the overall business environment will be much more competitive.
The term "inflation" describes a period of rising costs. The cost of everything will increase.
For the home business owner, inflation not only means that the cost of the materials and supplies that they use in their business will increase. It also means that their cost of living will increase.
For home businesses teetering on the edge, inflation or a recession could be just enough of a catalyst to cause the business to fail. Those home businesses with stable, well-thought out strategies should be able to weather the storm, however.
What about you? Is your home business prepared for economic change? What steps have you taken?
Leave a comment and let us know.
This is a very interesting and timely post. I think that a recession will affect home businesses. Although I keep a steady stream of freelance assignments, it takes longer to find new assignments. This has never been a problem for me. This time last year I got almost every job I applied for - about 3 out of 5. Now, it's more like 1 in 15. Plus, a long term client - who I depended on - had to tighten their finances, wherein I now receive fewer assignments.
Posted by: Valencia | January 17, 2008 5:32 PM | Permalink to Comment