How to conserve cash, cut spending as business owner during a recession
Posted Aug 22, 2022
With recessionary winds whirling, many small business owners have already cut back, but more trimming may be needed to weather the economic storm that’s brewing.
U.S. economic growth fell 0.9% in the second quarter, the Bureau of Economic Analysis reported on Thursday, the second consecutive quarter of negative GDP. That will ratchet up fears that the economy has entered a recession, though it is not technically an accepted definition for that change in the economic cycle. Fed Chair Jerome Powell said on Wednesday he did not think the economy was in a recession.
Some small businesses have already been paring back, based on signals of a slowdown. A report released Thursday by the finance automation platform Ramp found that small business spending on electronics dropped by 59% between May and June. Many small businesses spent 28% less on shipping, 14% less on advertising and 11% on SaaS and software purchases over the same time period, the report showed.