Business going well? Everything on track? Sure?
It’s time for a reminder. That next big crisis is right around the corner. We won’t see it coming because it won’t look like the last one. It will be new and unexpected. Kaboom. You’re in it. Are you prepared?
How can you prepare for the unknown? That’s always the first question that pops up when I tell business owners to prepare for the unexpected. “How?” they always ask.
When a business is operating efficiently, when it has a manageable debt position and a balanced inventory, it can survive changing market conditions that could destroy a competitor.
That means to prepare for a possible crunch, the best thing you can do is get your business fundamentals in the best possible order.
That may sound obvious. It isn’t. When business conditions are relatively good, businesses tend to go into a coasting mode. Inventory a little high? No problem, we’ll bring it down. Debt seems a bit high? Yes, but after we buy another new piece of equipment we can start paying it down. We’re fine.
Then it happens.
I don’t like to spread gloom but it’s been 8 years since the big one. We’re due. The way our new president is stacking the deck with corporate giants makes me queasy. Yes, I am pro business but these guys are in another league that isn’t pro your business. I fear we headed for a round of big corporate mergers and deregulation. Those big ones will get bigger and the rules holding them back with be suspended.
I urge you to be very careful for the next year. There is much unknown ahead and the dark clouds are already forming.
There used to be police show on TV that ended their morning precinct briefings with, “Hey, be careful out there.”
Wise words for anyone.
Chris Reich, TeachU