This has been the biggest question around here. I guess I’m going to say that businesses that have good credit (because credit is important for business) tend to be more stable and better positioned to make money during recessions. This is because these businesses tend to have more resources and people that can spend money. This is also because these businesses tend to be more stable and have more employees, which makes them more valuable to their owners.
This logic does not hold, however. Yes, businesses which have bad credit tend to have a harder time making money during recessions. And yes, businesses that have great credit tend to have more money to spend. But that doesn’t make them more stable. There are plenty of businesses that are better than average for a given credit situation, but that doesn’t mean that they will make money throughout recessions.
For more on this, check out this article by my colleague Mike from TechCrunch.
This is actually a pretty well understood pattern. Most industries tend to be pretty consistent over time, with the exception of those which have a highly volatile business cycle. Most businesses dont make money during recessions, and they tend to have a hard time making money during recessions too. This is why most businesses that are successful at making money during recessions arent that successful during normal times.
The business cycle is a pretty consistent thing, but there can be periods of time when it is not. The recessions are when businesses arent expected to make much money. This is why companies tend to go through a lot of restructuring, but not a lot of sales. During a recession, companies tend to make less money because their sales arent enough to cover their expenses.
This is more of a general rule, but I don’t think there is really a way to predict the business cycle. It can be pretty unpredictable, and even happen that companies can grow to be so large that they can make money if they dont go through growth phases. I think that the key variable here is your own personal ability to predict the business cycle. Many people who are able to predict the cycle arent so good at predicting anything else.
I think the reason there is so much variation in business cycle is because it also varies based on a company’s ability to control their costs and expenses. For example, Starbucks has a lot of different business cycles because the amount of money they have to pay their employees goes through different levels. Their costs also go through different levels. There are other examples that would be mentioned here that are not business cycle-related but that can make you think that your company is underperforming or not performing enough.
The question is when should you be worried about fluctuations in your business? When you have a good team of people and you have a lot of money in the bank, that is when you should be worried. But when things are going badly and you have lots of money to pay your bills and are struggling to pay your creditors, that is when you should not be worried. How to know which is which depends upon your business.
If you have a lot of money in the bank and you are struggling to pay your creditors, you should not worry, because you have plenty of time. But if you are struggling to pay your bills and you have lots of money in the bank and your company is performing poorly, you should not worry. In fact, you need to be worried when things are going badly and you have lots of money in the bank to pay your creditors.
Like any other business, money can make or break a company. But there is an important caveat. If you have lots of money in the bank and your company is performing poorly, your creditors might not be happy. You might be forced to close down your business and go out of business. This is because too much money in the bank can make you look like you have a lot of money in the bank.