Inflation, recession, COVID, interest rates rising, and lending drying up are all signs of an economy going bad. Every expense, from insurance to gas, creeps upward daily. So what is your company to do when everything costs more, and your customer base is looking to conserve cash?
Your subsequent decisions will decide whether your business thrives or dies in a time of famine.
We’ve seen this before—days of feasting on positive news, low-interest rates, and a booming economy. It seemed like it would never end. The truth is business, like the economy, is cyclical, and it should surprise no one that favorable conditions don’t last forever.
Times change, and lately, not for the better. Don’t panic, but don’t sleepwalk either. Your strategy during the feast will not work once the tide has gone out. The trick is to stay awake and ahead of the curve. During a storm at sea, you batten down the hatches, put on a life vest, and ensure there are no leaks in the boat. The same applies to your company.
Below is a summary of the attitude difference and thought process of a customer during a feast and a famine. Use this as a guide when creating a strategy to weather the storm. I strongly recommend you speak with your advisors as they often have a broader view of events because of all the different companies with whom they interact.
There is money to be made no matter what is happening in the business cycle—for those who are proactive and can remain calm, seek advice, and know in their heart that the feast will come again!