Anticipating a Downpour
As small business owners, we’d love it if the graph line of our lives proceeded along an orderly straight line upward, wouldn’t we? But life isn’t like that. The ups and downs of business are a fact of life, and the sooner we learn how to be ready for the showers, the sooner we enjoy a sunnier ride along the way. They are known as recession busters.
The idea is simple. We know the next downturn is coming…get ready for it ahead of time. Expect it rather than react to it. But how is that done? The No 1 advice from Facty writers is to eliminate debt. Pay off smaller invoices, consolidate larger ones. When the economy gets sluggish and income dwindles, you still have financial obligations. Reduce that footprint to remain solvent and able to weather the times.
Once you get a handle on how to handle debt, you can proceed to setting a plan into motion for handling monthly obligations. Rent/mortgage payments, utilities, wages are come into play. What is your monthly bottom line? It may be scary, but figure it out. When you know your monthly expenses and have debt under control, you can build an emergency fund to see you through a short downturn in the market.
Adopt a when not if mindset. Too many of us finally reach the end of a dry spell and breathe a sigh of relief. It’s over! Not really. The capricious and often fickle nature of the economy is seemingly unpredictable. Instead of trying to second guess what it going to happen, just accept that it is going to happen and be prepared for action. Author Tom Panaggio of The Risk Advantage wrote, “Never stop looking for ways to implement change, especially during tough times. When things get rough, weak competitors will go into hibernation, and this is when creative business leaders make their moves.” By becoming a performer rather than a hibernator, you can prosper through that next downturn.
This month we’ll focus on recession busters—those actions which lessen the impact of an economic downturn. Read through this white paper and as you do, just down ideas for your business. I loved the #9 slide…reaching out to old friends.
You can navigate from a position of reaction to being proactive by expanding your network.
Host an event.
Become more active in the Chamber.
Develop strategic business relationships.
Let’s become more resilient by being better prepared for the vagaries of the economy. Yes, there will be a few rainy days in the chart of prosperity with some downswings…but they don’t have to be a washout.