The economy is cyclic. So it is only a matter of time before you and your business experience a downturn. But there is good news: things will come back.
Or so says history. And, at the moment, we are living it. A war in Europe. High gasoline prices. Supply chain issues.
As the saying goes ”if you fail to plan you are just planning to fail.” In other words, just make sure you are thinking about a downturn before it happens.
What should you do? Here’s a short list:
- Create a 5-yer plan for your company.
- Talk with your contractors and suppliers to help share the workload.
- Let your employees in on the coming crisis.
- Manage inventory and your supply chains.
- Build an emergency fund.
- Cut out waste or things that are not necessary.
- Pay down debt.
- Don’t be afraid to ask for help.
- Consider helping others.
History shows us that downturns turn back up. We survived 1987 and 2008 and other downturns before then. Fact is, that we all need to think for the long term. That’s where that 5-year plan fits so well with this concept of survival.
We love numbers. If you are looking for help with your finances, call or write to us. TFO Solutions is dedicated to helping entrepreneurs and business owners with their financial strategy from the back office to the board room.
*Photos courtesy of Unsplash (photographers Luke Chesser and Towfigu barbhuiya)