New debates arise everyday regarding whether we are currently in a recession or not. Regardless of the answer, the effects of the economy are undeniable. Coping with the rising costs of gas, food, and utilities; families and businesses are having a hard time keeping their heads above water.
These uncertain times have resulted in consumers becoming increasingly conservative with their spending. Consumer confidence is at a 20 year low, according to the Consumer Confidence Board. That is pretty significant since consumers drive 70% of the economy.
The current state of the economy is bound to affect the choices and purchases we all make. However, how has the economy affected the way you operate your small business? Has the economy had any affects on your sales? David Rudofsky, the most recent guest on Small Business Trends Radio, shares his insights on recession in the interview titled “Strategies To Survive During A Recession“.
Steve-Good question. I see the rising costs in my personal life but it hasn’t slowed my spending. Partly this is because I don’t live paycheck to paycheck. I have a bit more buffer to deal with it.
From a business perspective I don’t see a slowdown at all. At my day job I sell electrical products to the oil and gas industry. As you can imagine things are booming. My side business (blog) is focused on life balance and growing wealth through entrepreneurship. I actually see more people starting things on the side to make up for rising costs.
This is affecting a lot of small business owners. Especially those operating small fleets of vehicles and also even those in crafting industries such as candle making. With the cost of all petroleum products on the rise, even a simple supply of wax for a candle making business is now an expensive thing.
It is the producers who drive the economy, first of all. For summer reading, I recommend The Prime Movers by Edwin A. Locke.
http://edwinlocke.com/#primemovers
Being a small business owner, I’ve had to downsize pretty much in every dept. My sales are lower, reimbursement cycle has slowed down. So yes this economy has definately taken a bite on my income potential
I recently read that here, in the United States, we are a consumer driven economy. And when consumer confidence is down - and people aren’t spending. . .pretty much signals recession.
I am definitely feeling the effects of the economy. Ever since gas prices started going up after the first of the year, my sales have been decreasing every month. Personally, I really haven’t changed any spending habits.