Here’s What a 2023 Recession Could mean for Entrepreneurs and How They Can Prepare
Source: Business Insider | Repost QBScott 12/15/2022 –
A recession in 2023 is probable. JPMorgan reported in November that the US economy will likely slow down, despite the Federal Reserve’s attempts to tamper inflation.
If these predictions are accurate, entrepreneurs will need to begin preparing their businesses now for the challenges ahead. Sales could slump, budgets could tighten, and securing capital could become a lot harder.
Insider spoke with founders and experts to understand how a recession could affect entrepreneurs’ bottom lines and the steps they could take now to prepare.
Challenge: Funding will be harder to come by but not impossible
Widespread tech layoffs and drops in venture-capital investment signal that an era of high-growth, high-spending startups is over, Jack Newton, a cofounder and the CEO of the software company Clio, said. While investors are pulling back and averting risk, the market isn’t drying up entirely.
“There’s still a lot of dry powder out in the market and a lot of capital for investors to deploy, but it’s going to be at a different price,” he said, adding that entrepreneurs would need to adjust their expectations from the big venture deals of the past decade.
“Investors are writing checks at multiples that are half or three-quarters less than what they were a year ago,” he said.
Author: Scott Meister, CPA
I help small businesses, accountants, bookkeepers, office managers, and business owners with their accounting needs. I’ve used QuickBooks since 2002 and train folks on how to use it efficiently. I create high-quality video training tutorials for QuickBooks and post them on QBScott.com.
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