The Reality

U.S. financial markets are in the fourth quarter and the Dow Jones Industrial Average on October 7, 2022, closed at -630.15.  Chairman Powell of the Federal Reserve is still playing Three Card Monte.

There’s one big problem here in this game of Three Card Monte, American businesses are the marks.  The dealer is the Economy, and the economic pundits are the shills.  A shill is a hustler who tries to convince other people to buy something or think something is great (shilling).  For the past 24-months, the financial pundits have been pushing the narrative things are “great”.

A quick disclaimer, we did not define the meaning of shilling.  If it quacks, walk, and sounds like a duck, it may be a duck.

 

Main Street Business

What does the economic downturn mean for American small businesses?  Uncertainty.  When decision uncertainty exists, get in the real know fast.  What is get in the know?  Quickly identify your business’ financial position and what is driving and not working for your business.  For this post we will review a few steps that may help you better understand your business health.

This is not the time for avoidance.  To continue to thrive in an economic downturn you must Adapt and AdoptAdapt is all about the business’ culture while Adopt centers on the business’ financial operating model going forward.

 

Pushing Forward in Uncertainty

All resilient businesses evolve through three phases: Respond, Recover, and Thrive.

Please note not all businesses will be impacted by an economic downturn.  A restaurant’s patronage may decrease by 10% to 20% because of a lack of disposable income while a fleet service company may see an uptake during a downturn because their clients’ believe it is more affordable to expense then to incur capital costs for an entire fleet of cars.

We believe owners who have conditions of uncertainty are seeking to pull together a strategy and would best benefit from these actions:  Reflect, Restart, and Revitalize.  These three actions will lay the foundation to continue thriving.

 

The framework to Recover in a financial downturn.

Get your cash in order. Understanding the financial health of your business will help you be prepared for a recession

Reflect

Where do we stand today?

  1. What has worked?
  2. What have we learned?
  3. What should we change?
  4. What has been the impacted?

Get up to speed on the impacts to your business

Restart

Where do we stand today?

  1. What is necessary?
  2. What does it look like?
  3. How’s our workforce?
  4. What resources do we need?

Identify immediate steps for your business to action

Revitalize

What does the future look like?

  1. Are there opportunities?
  2. Is our workforce optimize?
  3. Can we scale virtually?
  4. Did we suffer a loss?

Re-visiting and forecasting to seize opportunities

Economic up and down cycles are a normal part of business.  In any financial forecasting strategy, the goals is to anticipate and put forth a game plan the business can still thrive in.  To learn more how we may serve your business’ growth get in touch.