1. Evaluate your company’s own vulnerability to changes in the economy.
2. Develop an early warning system specific to your business.
3. Sketch out a contingency plan for economic changes.
4. Manage the business to gain or preserve the flexibility to implement the plan.
Bill Conerly is principal of Conerly Consulting LLC, chief economist of abcInvesting.com, and was previously Senior Vice President at First Interstate Bank. Bill Conerly writes up-to-date comments on the economy on his blog called “Businomics” and produces a monthly audio magazine available on CD. Conerly is author of “Businomics™: From the Headlines to Your Bottom Line: How to Profit in Any Economic Cycle”, which connects the dots between the economic news and business decisions.