Pay Attention To The World Economy And How It Affects Us

We are not an island unto ourselves. We are very much part of a global economy and what happens elsewhere in the world influences what happens here.

It is quite obvious that Europe is in a recession and heading deeper into it. There is likely to be a downturn greater than what is currently occurring. China is contracting, Japan is still reeling from their nuclear meltdown and tsunami and its economy is severely affected.

In short, our efforts to recover in this country – to rebuild our own economy – will be severely restricted and challenged by the global downturn happening everywhere else in the world. Imports and exports will affect our economy as will the value of the dollar against foreign currencies, all of which are in flux.

In response to this observation a prudent small business owner should make every effort to rid its business of excess unaffordable debt rather than hanging on treading water, painfully supporting unaffordable debt service. The next dip could be the one that takes you under.

I am suggesting that while our economy may be looking slightly better, we also have deep issues and with the global recession setting in, small business owners have to prepare for the worst. Do your debt workouts now while you are stronger as opposed to waiting until you are totally under water and unable to respond.