In this episode of The Freelancers Show, Reuven Lerner gives some insight into recessions, how they work and how you can prepare for them. He explains that an economy will rise and fall but is always growing. A recession is when instead of growing the economy decreases, there is less business activity, layoffs, etc…
Reuven explains why some people are talking about an upcoming recession. It is impossible to predict a recession but economists can use various events as signs of possible recessions. He explains how the long expansion, trade wars, and the inverted yield curve all point to an upcoming recession. Recession doesn’t always affect every sector, Reuven shares examples of recessions and the sectors they hit.
Reuven lists ways to prepare your business for a recession and share examples of how he has been doing this for his own business. First, make sure you cast a wide net for potential clients. Next, specialize in something specific and make sure the world knows your name and what you do. He stresses the importance of starting a mailing list.
Reuven warns against remaining in one vertical sector. He also warns to be careful about employing anyone full time and shares the pain he suffered during a recession trying to pay everyone’s salaries out of pocket. He advises moving from only working business to business to business to customer and gives tips on how to start that move. Finally in encourages everyone to keep up with economic news.
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