A lot has been written and said lately about the “New Economy.”  So, just what is it?  Allow me to boil it down into several short, succinct points:

1. The New Economy is not as dependent on credit leverage as before – meaning that individuals and businesses will begin to operate more from cash
2. As a result, the banking industry will go through many changes, adjustments and even more crashes before the dust settles. Its reliance on offering creative loans will change.  It will need to find more profit in treasury services and traditional loans.
3. Individuals’ and families’ lifestyles will change – necessarily becoming more frugal.  This will create less “consumer spending.”  The wise individual and family will cut spending by at least 33%
4. Consequently, businesses serving other businesses will also be cut back
5. Government spending will certainly have to decrease – President Obama’s recent freeze on federal salaries is just the first step
6. Taxes will rise
7. Joblessness will remain high for a pretty long period
8. The rate of giving to charities will decrease

The list goes on.  So – if you are planning for your small business, or contemplating starting a new one, consider all of these issues.  Also, consider reading my special report, Ten Essentials For Starting or Growing A Business In The New Economy.  CLICK HERE to get it now.

Tags: business coach, New Economy, recession, small business