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Basically, consumers are hunkering down to limit spending, save money, conserve resources, and change the way they've been living. The major influence on the health of an economy is the psychological state of its consumers. When there exists a broad belief that spending beyond necessity is unwise, people will change their habits and as a result, some businesses will have to close their doors. The economy is molting into a new, leaner animal. Rather than react in desperation to avoid doom, firms should interact with the current situation with innovative and forward thinking actions.

Financial Plan _ The financial plan consists of four sections: Financial Worksheets, Cash Flow Projections, Financial Statements, and Additional Financial Information. All of these components will tell the story of how you plan to start or grow your business from a financial perspective. It is vital that you explain the assumptions under which you have based your projections, for example, "We assume that there are no unforeseen changes in economic policy to make our products and service immediately obsolete." or "We assume interest rates will stay the same over the next three years." (both quotes from Bplans.com sample business plans)

The main thing to remember in this section is not to provide new data, but to explain in detail data that has already been provided and to provide the support for that data.

It may not be pleasant to imagine all the "what ifs," but doing it now and planning for those unexpected events will improve your company's chances of surviving a storm. For an excellent step_by_step guide on the details of developing a risk management plan, see the article "How to Develop a Risk Management Plan," by Charles Tremper at wikiHow.com.

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