I am starting to write on my small business series because it is important that small businesses get informed as to how the overall economy is going to affect them. Many small businesses got caught off guard during the housing crisis; some failed and some came pretty close to failing.
Marc Faber the international investor who predicted the housing crisis in 2005 came out with another prediction; the entire system must reset. There are systemic credit problems looming and it does not matter what side of the political spectrum you are on it is an inevitable economic event.
The issue is how small businesses are going to prepare for this credit crunch that is supposed to be worse than the housing bubble. I can tell you that large corporations were positioned for this crisis and as a consequence much of the large corporations did not fail. Also, the corporations that were not prepared such as GM and Chrysler received funding to help them through the crunch.
The small business owner on the other hand experienced a difficult credit environment and many small businesses failed because they did not have the same level of financial consultation the large corporations had. National Urban Development Center of the state of Florida is here to advise small businesses. Most of all we are here to help start ups and existing businesses with their business model to insure that growth is sustainable. Continue to read our blogs and let us help you through the tough times.
The looming credit crisis may be two to seven years out or more but there will be signs that it’s on the way. Remember Joseph told Pharaoh to stock up during the years of plenty because the years of scarcity will be coming. Business cycles have existed since the beginning of time. You just have to be prepared and read the signs.