Is a recession coming so soon that everyone has to tighten their belts? The world’s largest economy America is facing an unprecedented crisis and chances are that this time it is for real. Surviving recession in the past was easier. Now it will be tougher. Chances are, that in the recessive tsunami conditions, some big businesses will also be gobbled up along with many smaller ones. That’s not all; survival of the fittest will be telling unique stories.

As an individual how will recession affect you and how will you survive it. There will be a global impact on the recession in US and survival will be challenge. These are the brief points you should be thinking about and making sustainable decisions.

1. Are you an employee in a big or large company that has decided to lay off staff?

Either way you have to save your skin especially if you have a family to look after. Are you valuable enough to survive the lay off? If not, start hunting for alternate career or safer companies, if you feel the axe coming down. Networking with friends (even overseas) will be helpful. It may take six months or more but it will give some leads.

2. Are you running a small business? Scared you may have to wind up after all these years of sweat and toil?

Don’t just lay off the staff yet. They are equally scared. This is the time they need assurance that they are valuable. Remember, ‘be together in good and bad times’. May be you could halve the salaries. They will understand. Be lenient with the sales and marketing staff. They have met targets and brought revenues in the past. They are the very apparatus that the business has survived. They can write off their commissions in these times.

3. If you are an independent professional back up the resources keeping in mind the family you have to support. Sounds bad, but can you look for a job in the Middle East, India or New Zealand. That’s where most professionals are making good money. Your consultancy may not be required for quite sometime and even if it is, the fees will be a pittance.

4. Evaluate your current position in the industry. This will give you an idea if you want to shut shop, go aggressive or stay calm. This is the time to pay off all the debts. You don’t want creditors sealing your property or hard earned valuables.

5. Be proactive and get a plan to stay afloat. How have you managed all these years? You have to really think hard to get out of the credit crunch.

6. Are you involved at the stock exchange? You probably need really good shock absorbers. You will have to reshuffle your portfolio and get some liquid cash stashed for the future.

 ~ By N. Nagpal, economist and category author. 2008.