by LJ Suzuki of CFOshare As we learned in 2008, recessions can come on swiftly and cause major crises for all businesses, big and small. In today’s economy, it is essential to practice intentional recession planning as a small business. By mapping out your plan in advance of a recession, you may find that when a recession hits, you not only survive, but thrive. Make a Plan: Preparing for a Recession. Simply having a plan in place sets you head and shoulders above the competition. When the reality of an economic downturn hits, the act of decision-making can become paralyzing, and second-guessing can slow down important steps. When creating a plan, work through a variety of scenarios, from the best to the worst. You should already be familiar with your key business drivers through a forecast sensitivity analysis – use this information to plan what to do in the instance of a negative shock, so that your decision making can continue to be swift and precise. It is easier to make thes
