Are we heading into a recession? Most experts say the probable answer is yes.

What is a recession?

Recessions — defined as two consecutive quarters of negative economic growth — are caused by these reasons:

• economic shocks

• excessive debt

• asset bubbles

• too much inflation

• too much deflation

• technological change

Amazon.com made out pretty well after the dot-com bubble burst.

Amazon.com sold $672 million in convertible bonds to shore up its financial position in early 2000. A month later, the dot-com bubble burst. Had that happened just a few weeks earlier, we would have missed out on the convenient "click to purchase," we all relied upon during COVID lockdowns.

The 4 ways you can prepare so your organisation can not only survive, but thrive.

While most companies suffer during a recession, research shows us there are ways to mitigate the damage and maybe come out stronger. How, you ask? Prepare.

• Debt. Don't run out of money. Companies with high levels of debt are particularly vulnerable so consider deleveraging.

• Decision making. Delegate decision making further down the hierarchy. Decentralised firms are better able to adjust to changing conditions.

• Workforce management. Rely less on layoffs to cut costs and focus more on operational improvements. Layoffs can hurt morale which can dampen productivity.

• Digital transformation. Adopt new technologies. Technologies can help management understand their business better, help cut costs, and make companies more agile.

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