3 Great Recession Issues Your Business Still Has To Negotiate Today
In 2008, the financial world as we know it changed, seemingly forever. It was dubbed the “Great Recession”, and caused economic turmoil — and in some cases, outright collapse, across the globe.
Nearly a decade on from the start of the Great Recession, you could be forgiven for thinking that the dust will have settled and things have largely moved back to normal. Sadly, this is not the case. A recession so deep, so severe, and so all-encompassing, can never be bounced back from quickly. Your oh-so-modern business still has to navigate three particular obstacles that are a throwback to the financial abyss.
Borrowing is harder than ever
One of the contributing factors to the Great Recession was over-zealous and over-generous bank lending. Many of us associate this with personal lending; particularly, the “subprime” market that was the first domino to fall in the financial crisis.
However, business lending was also relatively easy to come by a decade ago. Most of the global economy had been thriving for over five years at that point, and lenders were optimistic that the bubble would never burst. Sadly, it did, and when the pop came, banks conceived much tighter lending regulations. This means you may find yourself struggling to obtain finance to expand your business.
Regulations have increased
At the time of writing, regulations across businesses are still relatively robust. This is a situation that the incumbent US President has announced plans to dismiss, but these plans are still being finalized.
In the meantime, you will find yourself facing a tough regulatory landscape that can feel as if it is dotted with minefields. This is particularly true regarding the use of business finance and management, which is why you may find assistance from the likes of Intersource Consulting Group useful. A modern business needs an expert eye to ensure that all is in order and to help manage the risks and controls of your business.
Consumer confidence is currently doing rather well, but this could take a knock in 2018. There have been whispers for awhile now that personal debt is becoming an increasingly serious problem. Some financial experts have even floated the car loans sector as a potential cause for the next great economic collapse, as some of the lessons from 2008 have not yet been learnt. Should any of these predictions turn out to be accurate, then consumer confidence will plummet.
This means you may find yourself struggling to sell products or services, as consumers are more likely to save their cash during times of low confidence. You need to have a backup plan for business continuity if this becomes a reality.
It seems a little unfair that your business is still paying a price — metaphorically at least — for a Great Recession that occurred over a decade ago. However, you can display some measure of control by ensuring you run a tight ship, keep your finances in order, and plan for the worst– while, obviously, still hoping for the best.