photo credit: LeSmou Imperator
Consumers decreasing their spending habits this past year and new year to come are not the only one’s. In August of 2008 a report showed that 49% of business were planning on cutting their spending and by time October rolled around that number jumped to a high of 69%.
The continuous credit crunch may have the biggest impact on business’ in 2009. This would not be that huge of a problem if it weren’t for sales being at a low at the same time. With credit being tight and sales down so low, this makes for a tough ride.
All the news however for 2009 is not bad as discussed on Entrepreneur.com, there are some light points in the tunnel. For instance, a lot of companies have managed to cut their cost’s before thing’s got to bad for them, which increases their chances of survival this year. And we must remember that not every sector of business will be hit as hard or in the same way.
While recent bad news rivals any seen since the 1930s, it’s unlikely that this contraction will be quite that bad. This is very different from the Great Depression. Because the government bailout is much bigger. Along with the government’s willingness to act, deposit insurance and lower trade barriers represent major economic distinctions between today and the Depression era.
How will your business weather the 2009 year?