Planning with Consideration for the Economic Forecast
Question
Should the economic forecast be an important factor in determining the type of business to start or acquire?
Answer
Most businesses that are acquired or started are done so with a long time horizon in mind. Given that, and the typical business cycles any economy cycles through: (downturn, bottom out, upturn, and peak), it’s probably more important to pick an industry in which you have loads of experience and then create a business model that is superior (look at our Venture Analysis), and that will do well no matter what the economy does. Otherwise you are merely trying to “time” the economy, which most economists can’t even do properly.
- January 28, 2011
- Business Planning
- Ask a New Question
Please login to post a comment.
Member Log In
Register Now
Register now to gain access to all of the resources available on our site. Basic membership is free!