“I have heard there are troubles of more than one kind. Some come from ahead and some come from behind. But I’ve bought a big bat. I’m all ready you see. Now my troubles are going to have troubles with me!” – Dr. Seuss
The business news over the past few days has been somewhat grim — and especially unkind to some well known brands and consumer products. The stock price of Bed Bath & Beyond has dropped by 60% due to cash flow concerns and the sale of a significant stake in the company by one of its high-profile investors. Additionally, the Regal Cinema chain has announced that it will be filing for bankruptcy after seeing attendance decline precipitously due, in part, to the impact of COVID and tough competition with streaming platforms who are more efficient and cost-effective for the consumer. And did someone say that inflation is higher than normal?
It’s easy to get discouraged reading the news of these big businesses and their expense reduction moves. Although not every business is impacted by the macro-environment, there certainly does seem to be a general slow-down in consumer demand across many goods and services. However, history tells us that many companies emerge stronger than ever after recession-like periods.
And so the question is: if you’re a small business owner, how do you prepare yourself to endure an economic slowdown?
Does all this mean that we are not optimistic about the future? In two words: Hell.No.
Small business owners need to be able to adapt to changing times and circumstances. As CFOs, we always encourage transparency and intelligent, prudent decision-making. Yet, there is no reason to believe that your company cannot prosper at a time when the global outline is not as optimistic. Remember the core strengths of your company and your management team — and make sure that you remain focused on the goals you established at the beginning of the year.
“I can be changed by what happens to me. But I refuse to be reduced by it.” — Maya Angelou
Take-away: If your company needs experienced finance leadership to guide you through good times and challenging times, contact Brian or Scott for a free diagnostic at email@example.com.
Co-founders & Managing Partners