When evaluating the decade-long bull market, it’s reasonable to assume that entering a recession is a possible outcome. With economists unsure on the future of the world’s financial stability, it’s best to prepare for the possibility of fluctuations in the market.
Here, we’ll give you our IT admins’ guide to saving money, focusing on how to best prepare organizations for economic hardship and giving professionals the tools they need to protect the prosperity of an organization from the outside influence of the spiraling effects of ever-growing threat of recession.
What Happens in a Recession?
The last recession to occur in the United States began in late 2007 and lasted until mid-2009, marking the deepest economic downturn to hit the U.S. since the Great Depression in the 1920s.
It’s important to keep an eye on economic prosperity, especially for organizations that thrive under manufacturing and selling a product. According to Bloomberg, as of October 2019 there is a 27% chance of recession within 12 months, but Fortune warned that the slowing global economy could mean trouble on the horizon, possibly causing the probability of a recession to increase.
With a drop in market expansion, consumers, and therefore businesses, commonly react by dramatically reducing their spending in hopes to save enough to get through the hardship, which perpetuates the halt in purchasing that commonly causes a recession. There is a sort of hush that falls over the market and organizations — where consumers and sellers hold their breath, are afraid to spend or invest.
Unless your organization is incredibly well-capitalized, it is likely that a downturn will affect you and your team. Here we’ve listed tips on staying afloat in harder times.
Rank Your Projects
When it comes to taking an economic stance, it would be best for an organization to prioritize the current and upcoming projects slated for the approaching quarter or year. Budgets and headcounts could change, and it’s crucial that leaders prioritize what needs to be accomplished and what can wait.
Having a plan allows organizations to generate the resources needed for projects (Read more…)