--- title: Frequently Asked Questions About Recessions description: Check out our answers to the most frequently asked questions about economic recessions. image: https://blog.itreconomics.com/hubfs/pexels-photo-590045.jpeg --- FAQ # Frequently Asked Questions About Recessions Check out our answers to the most frequently asked questions about economic recessions. [ ITR Economics ](https://blog.itreconomics.com/blog/author/itr-economics) Jan 13, 2020 --- **Is it a recession when the market hits 0% year-over-year growth and then the growth rate starts increasing again?** No, that is a soft landing. **Can my business stay out of recession if my market goes into recession?** Yes. Seeing a recession coming well enough in advance gives you time to position yourself accordingly. This is not always the case, but it is possible. **Are there still opportunities to be had during a recession?** Yes. If you see the recession coming well in advance, you can conserve cash during your growth/slowing growth phases and then make purchases at lower costs during the downturn. **Can either political party negate a coming recession?** No. The overall economy is too large. It cannot be controlled to that degree through the near term, whether through legislation or via executive order. **What are ITR’s top Management Objectives™ if my business is in recession?** Start thinking half a cycle ahead if you are already in Phase D, Recession, and begin preparing for [Phase A, Recovery](https://youtu.be/JJGh-TlYxTk).  However, if you are in [Phase C, Slowing Growth](https://youtu.be/GP29ax5keF4), but expect to move into Phase D, Recession, consider these 5 steps: - Focus on the segments of your business that are the most profitable - Trumpet your competitive advantages and start developing your message for Phase D. Why should people want to buy specifically from you during a downturn, which they are also likely feeling? - Practice cash management for proper allocation and inventory control (if applicable) - Ask yourself what you should be doing and what you should stop doing. - Practice resource management: divert resources toward more profitable parts of the company Other ITR Economics [Phase D Management Objectives](https://www.youtube.com/watch?v=Ej1l2WcqNj4&t) include: - Implement cost-cutting measures - Offer alternative products with a lower cost basis - Perform due diligence on acquisitions while valuations are falling - Reduce advertising as consumers become more price conscious - Enter or renegotiate long-term leases - Consider capital equipment needs for the next cycle - Tighten credit policies - Develop programs for advertising, training, and marketing to implement in Phase A - Lead with optimism, remembering that Phase D is temporary **Do all industries go into recession at the same time?** No. The economy is like a train; each industry is a railcar. Understand your industry's position in the train to better understand when it will enter into recession. **What is a working definition of Phase D, Recession?** The 12/12 Rate-of-Change is declining and is below the zero line (negative growth rate). The data trend (12-Month Moving Total/Average, also written as "12MMT" or "12MMA") is below the year-ago level, and the rate of decline is increasing.   **What are the two most common short-term impacts of a recession?** - Running short on cash - Work expanding to fill the extra time See our **[blog post here](https://blog.itreconomics.com/blog/short-term-impacts-recession)** to learn how best to combat these two impacts. Is it possible to make plans before the next recession? [Yes - ITR Economics can help!](https://itreconomics.com/evp-flex-evp-360)   [FAQ](https://blog.itreconomics.com/blog/tag/faq) [Executive Strategy](https://blog.itreconomics.com/blog/tag/executive-strategy) ## Similar posts Solutions ### [Manufacturing in 2020: Preparing for Growth](https://blog.itreconomics.com/blog/manufacturing-growth-2020) What can you expect from the manufacturing sector in 2020? In our January webinar, we will outline our predictions for manufacturing in the year... ITR Economics Jan 9, 2020 Industry Updates ### [Housing Construction: Some Good News](https://blog.itreconomics.com/blog/housing-construction-some-good-news) We anticipate that inflation will reach a cyclical low in the latter half of 2024. Will the relief last? Find out in a new blog from ITR Economics! ITR Economics Aug 17, 2023 Solutions ### [US Manufacturing – What to Expect in 2022](https://blog.itreconomics.com/blog/us-manufacturing-2022) Read Jackie Greene's most recent blog on manufacturing market trends for 2022. For more information, sign up for our webinar on October 28! Jackie Greene Oct 7, 2021 ### Free Economic Updates from ITR Economics Hear the latest economic news from our experts, stay in the know with our frequent blogs, and get a first look at ITR Economics’ latest promotions – all free with our economic updates! 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