Prepare for a Changing Economy

As the economy shifts, ask yourself these four questions. They'll help you prepare for whatever comes next.

- ADAM BORNSTEIN

Q. I'm afraid a recession is coming. How much should I change how I run my business? - ARTIE, LONG ISLAND, NEW YORK

REMEMBER GOLDILOCKS?

In the old fairy tale, she breaks into the three bears' house and tries all the porridge-one is too hot, one is too cold, and one is just right.

As we enter this time of uncertainty, your job is to be like Goldilocks. Don't come in too hot or too cold-which is to say, don't conduct mass layoffs, but don't continue business as usual, either. Instead, you'll want to anticipate what's most likely to occur, moderate your extreme instincts, and land on a strategy that's just right. How? Start by asking these four questions.

1 What is your nightmare scenario?

I ran marketing for Tim Ferriss for four years, and his practice of "fear-setting" really stuck with me. As Tim explains it, this is an exercise designed to help you avoid worst-case scenarios by envisioning and planning for them.