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It seems that no matter where you look there are talks of an upcoming recession or at least a market correction. While everyone has their own theory on what is causing our economy to struggle, most believe that the economy will see a bit of a dip in the next year or two. One of the reasons for this is because of the rising inflation and how expensive things have gotten, including labor.

Companies are hiring people at higher rates than usual because of inflation and other challenges that come with finding reliable workers. While companies are fine with hiring and paying more for those workers if they are turning a profit, if business starts to turn the other direction that labor will not be as much of a help as it will be a major expense. Small businesses are impacted by recessions or slow markets more than any other area in business. Even entertainment businesses do well during recessions.

If you own a small business, the only thing you are concerned about is how to protect it if a recession does happen? The key thing to remember is that there is not a one size fits all strategy that will work for every business. You need to take into consideration what makes your business different and how it might be impacted by a shrinking consumer base?

One example could be an air conditioning company. These companies tend to not have to worry about recessions as much because their services are always in demand. However, with units becoming more reliable, these companies are seeing fewer installation and repair jobs, especially with the increase cost of these units. A recession may actually create a new opportunity for an air conditioning company as many homeowners who have solid incomes look to upgrade their home and one of the first ways people upgrade their home is with a new air conditioning unit.

Roofing companies also tend to see a lot more interest whether the economy is going up or down. However, roofers actually see an increase in smaller job demands than larger ones during a recession. Part of the reason is because homeowners will utilize this time to upgrade their homes but also because upgrading your roof is a great opportunity to lower your insurance premiums which can save you money in the long run and in some cases can provide a tax credit as well.

A mobile car washing or car detailing company is also a company that could be greatly impacted by a recession. This is where it comes down to the strength of the clientele. However, usually if the markets are starting to go in a different direction, you will also see a significant drop in gas prices. This makes any service or businesses that are heavily impacted by fuel prices very fortunate. Cutting fuel costs by 20%, simply because the prices have gone down, can save some companies thousands of dollars a week and for delivery drivers, or people who have to drive consistently for their jobs, hundreds of dollars a month.