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Q: How long does a recession last? What can my business do to get through a recession?<\/strong><\/p>\n\n\n\n \u00a0A: <\/strong>Historically, recessions last about ten months. That said, we can\u2019t determine exactly how long a future recession will last until it\u2019s over. To get through a recession, your business should save money, not take on extraneous debt, and identify a niche.\u00a0<\/p>\n\n\n\n Some economists claim that a recession is coming<\/a>, and others claim that we\u2019re already in the middle<\/a> of one. <\/p>\n\n\n\n Although we can\u2019t determine with perfect accuracy the specifics of future recessions, past recessions give us key insights into the length and severity we can expect when the economy takes a dive. This helps us create an accurate recession timeline. <\/p>\n\n\n\n From 2007 through 2009, the United States experienced one of the worst downturns<\/a> since World War II. <\/p>\n\n\n\n The collapse was triggered by shady financial instruments and obscene government bailouts<\/a> across several sectors, and in the years leading up to this recession, several indicators were pointing to a coming crash. <\/p>\n\n\n\n This period of economic struggle was called The Great Recession<\/a>, an adage to the Great Depression of the 1920s. <\/p>\n\n\n\n While we aren\u2019t currently seeing the same indicators that pointed to the 2008 collapse, different indicators like lower familial wealth and diminished homeownership are causing rising fear throughout the country. <\/p>\n\n\n\n Because of the public\u2019s widespread fear of an economic downturn, questions like \u201chow long does a recession last?\u201d are on everyone\u2019s minds. <\/p>\n\n\n\n In this article, we\u2019ll be exploring the length of an average recession, how this recession might be a little different than previous recessions, and what to expect from the coming recession. <\/p>\n\n\n\n Next, we\u2019ll look into digital tools that you can use during a stressful recession. <\/p>\n\n\n\n Whether you\u2019re a business owner trying to determine what to expect during a recession or a fledgling entrepreneur looking to get started, this article should give you plenty of valuable pointers. <\/p>\n\n\n\n Asking questions like \u201chow long does a recession last in the stock market?\u201d <\/p>\n\n\n\n Don\u2019t worry — you\u2019re in the right place! <\/p>\n\n\n\n <\/p>\n\n\n\n Questions like \u201chow long does a recession last in US\u201d are perfectly valid. <\/p>\n\n\n\n But before we dive into the standard recession length – let\u2019s take a closer look at what a recession is. <\/p>\n\n\n\n Historically, most countries have defined a recession<\/a> as \u201ca period of economic decline that lasts at least two successive quarters\u201d. <\/p>\n\n\n\n The United States, however, uses a committee called the National Bureau of Economic Research, or NBER<\/a>, to determine whether or not we\u2019re in a recession. <\/p>\n\n\n\n This committee is a nonprofit organization that uses several factors<\/a> outside of a 2-quarters-long reduction in the economy, like employment numbers, economic output, and consumer demand. Let\u2019s take a closer look at these key factors below:<\/p>\n\n\n\n Unfortunately, even with these clearly defined factors that are associated with recessions, the NBER makes the final call. <\/p>\n\n\n\n Outside the rather vague phrase \u201ca significant decline in economic activity that is spread across the economy and that lasts more than a few months,<\/a>\u201d the exact definition of a recession is essentially whatever the NBER decides it is. <\/p>\n\n\n\n As you can imagine, this makes periods of economic downturn fairly confusing for the average American. <\/p>\n\n\n\n Questions like \u201chow long does a recession last usually\u201d just aren\u2019t as easy to answer when the metrics by which we gauge a recession aren\u2019t clear. Just look at July of 2022: <\/p>\n\n\n\n The U.S. experienced two consecutive quarters of decline, the market was getting hammered<\/a>, sentiments were negative, and fear was high. On the other hand, employment slightly declined<\/a> during this same period. <\/p>\n\n\n\n Situations like these make it difficult to determine what exactly our next recession will look like. <\/p>\n\n\n\n Thankfully, we have ample historical information to use to help us identify what the future recession length might look like. <\/p>\n\n\n\n With data that has been collected for well over 100 years<\/a>, it might be easy to answer a question such as \u201chow long does a recession last 2022?\u201d. <\/p>\n\n\n\n Fortunately, data from as far back as 1854<\/a> gives us plenty of insights. Since 1854, the average length of a recession has been approximately 17 months. <\/p>\n\n\n\n But if you only look back to World War II, the average recession length is only 10 months. This indicates that recessions in modern and more recent times are remedied faster than they were in the past. <\/p>\n\n\n\n However, the 2008 recession blew previous expectations out of the water when it lasted a whopping 18 months. <\/p>\n\n\n\n All of this data gives us a general idea of the standard recession timeline but also points back to the fact that recessions can\u2019t be predicted solely by looking at average length.<\/p>\n\n\n\n With all the economic metrics used to determine whether or not we\u2019re in a recession, countless variables can impact said the recession and keep it going longer than historical precedent would otherwise indicate. <\/p>\n\n\n\n It\u2019s worth noting that most recessions result in periods of economic boom. <\/p>\n\n\n\n After a recession, the economy typically ramps up significantly compared to pre-recession levels. <\/p>\n\n\n\n For business owners, this means that if you can weather the storm, you\u2019ll usually be rewarded for your patience and perseverance when the market turns around. <\/p>\n\n\n\n <\/p>\n\n\n\n Our current recession has several interesting and unique features that can lend difficulty to questions that resemble \u201chow long does a recession last minimum\u201d. <\/p>\n\n\n\n Below, we\u2019ll cover some ways our current recession differs from past recessions. <\/p>\n\n\n\n First, the COVID rebound continues to affect the economy. <\/p>\n\n\n\n While COVID\u2019s impact isn\u2019t discussed as often as it once was, it significantly impacted supply chains and slowed down the production of consumer goods. <\/p>\n\n\n\n The pandemic brought a rapid drop-off in consumer spending power. This was the shortest \u2018recession\u2019<\/a> we\u2019ve ever experienced — lasting only two months before the economy came booming back. <\/p>\n\n\n\n This short-lived period of decline, followed by extraordinary growth, has led to a pretty serious mismatch between supply and demand. <\/p>\n\n\n\n In the wake of the pandemic, quit rates reached levels that hadn\u2019t been seen since 1973<\/a>. The reason for this is that many people are refusing to work for extremely low wages. <\/p>\n\n\n\n Further, a majority of these workers are seeing higher wages<\/a> as they change occupations. Many of these individuals are choosing instead to start businesses or become freelancers. <\/p>\n\n\n\n This has further complicated the mismatch between supply and demand, as some people are making more than before while the corporations that relied on cheap labor have hit serious roadblocks. <\/p>\n\n\n\n To make matters more confusing: <\/p>\n\n\n\n As more workers find better-paying jobs<\/a> and create businesses of their own, the unemployment numbers remain stagnant. This leads to confusing metrics during a period that would otherwise be deemed a recession. <\/p>\n\n\n\n Finally, there is the phenomenon of a somewhat new<\/em> kind of inflation. <\/p>\n\n\n\n Much of the current inflation has less to do with fundamental economics and more to do with megacorporations collectively raising prices. <\/p>\n\n\n\n The motivation behind these price hikes isn\u2019t simply to boost profits. Corporations share a complicated relationship. If one big corporation raises prices, other big corporations are incentivized to do the same to match the market price of goods. <\/p>\n\n\n\n This leads to a continued pattern of companies raising prices over one another — to the detriment of the consumer. <\/p>\n\n\n\n For example, meat prices started to skyrocket<\/a> during the pandemic, becoming 21% higher on average across all markets. <\/p>\n\n\n\n Four companies<\/a> control approximately 85% of the American pork, chicken, and beef market. Since the beginning of the pandemic, these four companies have seen a 500% increase in net income. <\/p>\n\n\n\n This \u2018new\u2019 kind of inflation is effectively price gouging. <\/p>\n\n\n\n But amidst an economic downturn, these companies can point the blame at inflation and rising supply costs to account for these obscene numbers. <\/p>\n\n\n\n Because this isn\u2019t a direct result of supply and demand, it might not be solved as easily by supply and demand adjustments. <\/p>\n\n\n\n Regardless of the differences we\u2019re seeing in this recession, no two recessions are exactly alike anyways. <\/p>\n\n\n\n So yes, this recession will be different. <\/p>\n\n\n\n But thankfully, businesses can prepare<\/a> for any kind of economic downturn. <\/p>\n\n\n\n NEXT STEPS:<\/strong> The Complete Guide to Making Your Business Recession Proof<\/a> <\/p>\n\n\n\n While several indicators are pointing to some serious economic fallout, new business owners and future business owners need to know how to prepare regardless of recession length. <\/p>\n\n\n\n <\/p>\n\n\n\n With all of these factors to consider, the coming recession might last longer than prior recessions due to the complex and unusual economic circumstances surrounding it. <\/p>\n\n\n\n Taking this into account, the coming recession also holds many new opportunities that prior recessions didn\u2019t. <\/p>\n\n\n\n Wondering \u201chow long does a recession last\u201d is only the beginning. If you prepare correctly, you can set your business up<\/a> for continued success despite the widespread economic decline. <\/p>\n\n\n\n From adjusting prices to tweaking your target audience, there are several ways<\/a> that savvy entrepreneurs can use these times to position themselves. <\/p>\n\n\n\n Below, let\u2019s take a look at what the average small business can expect during this recession and go over some tips to help you thrive \u2013 regardless of recession length. <\/p>\n\n\n\n While modern supply chains have been suffering, the price increases that we\u2019ve seen are a result of much more than simple bottlenecks. <\/p>\n\n\n\n This gives smaller businesses a chance to present themselves as an affordable option. In times of reduced spending power, this is a fantastic way to win new markets and quickly grow a business. <\/p>\n\n\n\n If you can offer a product a few cents cheaper than your competitors, consumers will flock to your offerings. Thanks to alleged corporate price gouging<\/a>, entrepreneurs can offer a majority of their products or services for a better price — often even if they\u2019re sourcing locally. <\/p>\n\n\n\n Some industry reports are claiming that ecommerce is going to account<\/a> for nearly a quarter of global retail sales by the end of the year. <\/p>\n\n\n\n Because of the widespread acceptance of online business and reliance on online shopping, businesses can start with far less overhead and quickly connect with willing customers. <\/p>\n\n\n\n Through the use of a Virtual Office<\/a>, business owners can easily use this affordability to take advantage of the increase in e-commerce and carve out their own piece<\/a> of the digital market. <\/p>\n\n\n\n NEXT STEPS:<\/strong> How to Start a Virtual Company<\/a> <\/p>\n\n\n\n At the end of the day, many entrepreneurs are going to thrive regardless of the recession length. <\/p>\n\n\n\n Generally, low prices, widespread economic fear, increased trust in e-commerce and other digital businesses<\/a>, and a shaky market provide the perfect opportunity for hungry entrepreneurs. <\/p>\n\n\n\n And remember: <\/p>\n\n\n\n The growth that occurs when a recession ends gives business owners something tangible to work toward. If they capitalize on this opportunity, the economic boom on the other side can slingshot them towards massive success. <\/p>\n\n\n\n The key to starting a business during a recession is finding a niche for your business to fill. <\/p>\n\n\n This might be easier said than done, but we\u2019ve taken a closer look at some business ideas that you might consider during a recession: <\/p>\n\n\n\n NEXT STEPS:<\/strong> Freight Transportation Revenue to Grow 53.65% by 2030; New Insights into Future-Proofing the Trucking Industry<\/a> <\/p>\n\n\n\n Hopefully, you\u2019ve found some answers to the question, \u201chow long does a recession last.\u201d <\/p>\n\n\n\n But better yet: <\/p>\n\n\n\n Maybe you\u2019ve found some actionable methods to get through any recession successfully. <\/p>\n\n\n\n Keep reading for some tips about digital tools that you can use during a recession! <\/p>\n\n\n\n <\/p>\n\n\n\n Most recessions last somewhere between 10 and 17 months. That said, the current recession might last longer because of the complex factors contributing to it. <\/p>\n\n\n\n Small businesses can use the modern economic landscape to connect with consumers and build a successful business, even in a recession. <\/p>\n\n\n\n With the rise in digital businesses<\/a> and constant technological advancements, modern entrepreneurs have more tools available to them than ever before. <\/p>\n\n\n\n Consider one of Alliance\u2019s<\/a> Virtual Offices<\/a>. <\/p>\n\n\n\n These Virtual Offices<\/a> provide a cost-effective way to create a legitimate, professional, and flexible business. Not only does Alliance<\/a> have offices available in every state, but there are several locations available in most major cities as well. <\/p>\n\n\n\n The modern market values flexibility over everything. Alliance<\/a> gives you a way to easily expand to new locations, using high-quality marketing metrics to perfectly identify your target audience, and using your Virtual Office<\/a> to corner your new market. <\/p>\n\n\n\n Outside of your new Virtual Office<\/a>, Alliance provides several other tools that you can use to position your business for long-term success. Check out our website<\/a> to see which services you can use for your business! <\/p>\n\n\n\n Further reading<\/strong> <\/p>\n\n\n\n
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Recession Length <\/h3>\n\n\n\n
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<\/a><\/figure>\n<\/div>\n\n\nWhat to expect from the coming recession? <\/h2>\n\n\n\n
\u2018New inflation\u2019 and supply chains <\/h3>\n\n\n\n
E-commerce boom <\/h3>\n\n\n\n
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\n\n\n\nEntrepreneurs are recession proof <\/h3>\n\n\n\n
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<\/a><\/figure>\n<\/div>\n\n\nDigital tools for use in a stressful recession timeline <\/h2>\n\n\n\n
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