Managing a business is challenging enough during favorable economic periods, let alone during business downturns or during slow economic growth periods. However, history tells us that business conditions change. No matter how good the economy is, eventually a downturn (and probable recession) will occur. Likewise, even during recessionary periods, there is some satisfaction in knowing that eventually a recovery is on the horizon.
The unfortunate part about economic cycles is that businesses usually are affected in ways that are beyond their control. When the economy is in a downturn, even the best-managed firms experience slower growth, lower profits and cash flow problems. To further complicate matters, economic swings are difficult to predict and virtually impossible for which to plan. Although we know cycles inevitably occur, we do not know when or for how long they will last.