Recessions are cyclical and many experts are saying that in 2020 – election year – we’re heading into a recession. Just as many people, including our president, say the economy is strong…and it’s not.
It’s hard to tune out all the noise and know what to think. Most people were caught off guard during the last recession and some of the smartest guys on the planet lost their businesses.
Duke professor and economist, John Graham said in a recent interview, “CFOs are growing more certain of a 2020 recession because of the paralyzing consequences of economic and political uncertainty — including trade wars — on business. Faced with uncertainty, companies may pause by holding off on spending and hiring. That can turn into a self-fulfilling prophecy.”
Regardless of what’s being said on either side, what you can do is prepare your business through careful planning to minimize the effects of a recession and to build on the inherent opportunities that arise in challenging times.
Dwight Eisenhower famously said, plans are useless, but planning is essential. Over the weekend I did some digging into our financials and realized some things I wasn’t aware of. Typically, we business owners are happy when there’s money in the bank and the company is in the black which can lull us into stopping short of further analysis.
Engaging in business planning forces us to confront every aspect of the business, what’s ahead and how we’re going to make that happen. We have to evaluate our market strategy in light of technology advances and disruption in every industry. From there we must determine our people strategy, succession planning and future team needs. Discern how we’ll measure our results against clearly defined targets. How we’ll fund growth and what our financial milestones including profit and cash need to be.
Since history tends to repeat itself our best defense is an offensive approach through thoughtful planning. We can help and now is the perfect time. Call us today at 305-285-9264 for a complimentary strategy session and get started on your Action Plan today!