WHAT, ME WORRY?

I don’t often address economics in my blogs. Today with the large drop in the DOW there is uneasiness among small business owners. The fear is that a recession is just around the corner.

My comments today are aimed at the small business owners and potential new business start-ups. Unless you are involved in international trade or are a financial advisor or are relying on the stock market to provide your financial survival requirements, you will be fine. (While the stock market has been erratic recently, most major businesses still have a lot of reserves. I don’t see s bubble being burst such as the real estate bubble in the last recession.

The U.S. economy is still strong. I don’t foresee an immediate cause to panic or to pull back your business growth efforts. A real economic downturn that affects everyone will occur if everyone stops trying to grow their businesses and adopt a “wait and see attitude.”

Yes, by all means be cautious; as a hedge, remember that cash is still king and my recommendation has always been for every business owner to have a six month operating reserve for both their business and personal life.

Economic downturns just as economic growth spurts offer opportunities for small businesses. A small business can readily adapt to new circumstances and can implement change much faster than a bigger business.

A positive attitude combined with hard work will always win in any economy.

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Tips & Advice by Nick Petra, CFP – Founder of Strategic Duck and BizQuack