Just as there are seasons in a year, there are business cycles in our economy.
In the same way that spring brings the promise of new growth, the first phase in a business cycle signals economic expansion. Economic expansion leads to a peak and, like summer leads to fall, the peak phase of a business cycle ends in a recession. A recession is followed by the trough phase which is the winter of an economic business cycle.
From the years 1945 to 2009, the National Bureau of Economic Research has identified eleven business cycles, with the average cycle lasting slightly over 5-1/2 years.
The current business cycle has lasted over 10 years… the longest in history.
An Indian Summer is a period of unseasonably warm, dry weather that sometimes occurs in autumn.
Like an Indian summer, the peak phase of the current business cycle feels like an economic recession will never come. But we know better, and you may already be seeing signs of a recession in your business.
And, like the seasons of the year, the economic business cycle has its purpose.
No cycle is the same, and each phase is an opportunity to grow your business… not only during the expansion but during the recession and trough phases as well. These are times for pruning things back and integrating new systems. So, like spring, when economic expansion returns, you can maximize the growth of your business.
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