Definitive Business Plan, Second Edition, The

The big picture – the economy

With regard to the big picture, you want to know two things. Where is the economy going and how will it affect you? Generally, a greater level of economic activity boosts sales. A downturn in the economy usually damages sales. You might have recession-proof products. If not, perhaps you should try to add some. When times are hard, people switch to cheaper, basic goods and defer capital spending (focusing instead on maintaining what they already own).

Ignoring the thorny issue of cause and effect, an increase in consumer demand is linked to greater industrial activity overall. Even if your customers are industrial and ...