After months of surging costs and labor shortages, businesses face a new potential challenge: recession. The Federal Reserve is expected to continue raising its benchmark inter-bank lending rate, which will likely push up the cost of capital--and push more people and businesses to retrench. If that happens, you can bet consumer demand will falter and potentially spur a recession.
While this outcome isn't yet set in stone, it's likely enough that businesses need to start preparing as soon as possible. Early recessionary conditions are already here: Hiring freezes in the tech industry, and the dropping values of cryptocurrencies already point to economic downturn. Small businesses need to race ahead of the issues, and can start doing so by cutting costs and paying close attention to how consumer demand shifts in coming weeks and months.