Speculation about a looming recession is putting pressure on many small-business owners to protect themselves against a downturn, and experts say it’s not too early to start preparing.
A June 2022 Goldman Sachs survey of over 1,500 small businesses found that 93% are worried about a recession happening in the next 12 months, which could be particularly brutal for small businesses. During the 2007-2009 recession, small businesses failed at nearly twice the rate of the economy average and experienced bigger sales drops if they did survive, according to research from the Federal Reserve Bank of St. Louis.
Two small-business pros say prioritizing these four things right now can help small-business owners be ready if a recession comes.
1. Keep cash king
Half of small businesses have a cash buffer of less than one month, according to a 2016 JPMorgan Chase survey of about 600,000 small businesses. “That’s definitely not enough cash to be able to survive in a big downturn,” says Jody…
This article was written by Tina Orem and originally published on www.nerdwallet.com