Prepare for the Worst, Hope for the Best
HOW TO HELP YOUR BUSINESS PREPARE FOR A POSSIBLE RECESSION
“Something’s coming—we just don’t know what.”
Whether this moment leads to a turn in the business cycle or to a continuation of recent inflationary trends, it is a time when companies can make the kind of pivot that strengthens their growth trajectory for the next several years.
-McKinsey & Company, August 2022
Without a crystal ball, it is difficult to predict what to expect next for the US economy, and how that will impact small and medium-sized businesses. However, with thoughtful leadership and strategic financial planning, organizations can build resilience and survive a possible recession.
Businesses should focus on building systemic resilience through:
- Foresight – Understanding the challenges and opportunities caused by a possible recession
- Response – Be able to take advantage of opportunities and mitigate challenges in real time
- Adaptation – Make strategic pivots with a longer-term strategy. Businesses should aim to emerge from disruptions stronger and better positioned for growth.
- Long-term Strategy: Don’t sacrifice long-term value creation for quick cost cuts. The most successful businesses will be better positioned to meet longer-range goals of sustainable, inclusive growth for all stakeholders—customers, employees, investors, and the community.
Dayton, Ohio Area President Mark Clower also recommends taking a note from COVID-19 – many of the lessons during this crisis can be implemented or adapted to help your business survive a possible recession.
While these ideas may seem straight forward, Cleveland Area President Jim Gilbride cautions, “we see too many small businesses that do not have the resources or know-how to get this planning done.” If you want to discuss how a fractional CFO can help you build resilience in your organization, or other recession-related concerns, get in touch with us to schedule a complimentary consultation.