Thursday, October 01, 2009

After the recession: more trouble

My Financial Post column this week looks at the economic prospects of the long-awaited recovery – and why things may not turn out as rosy as we would like.

According to an economic briefing I attended last week, the post-recession period will be marked by high interest rates and resurgent inflation, which could reach 6% by 2012 – which would be a 25-year high.

But forewarned is forearmed, so the column also offers counter-strategies to help entrepreneurs make the best of these conditions. A few ideas:

• Borrow now: “If you wait until there's undeniable proof of the recovery, then you'll be paying higher rates along with everyone else."

• Cut back costly entitlements: "Don't give people raises for nothing,"

• Use automation to control rising labour costs

• Burrow deeper into your market niche: The narrower and more exclusive your niche, the more you can set the pricing trends.

You can read the full story here.

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