The economic and political landscapes aren’t all that favorable lately and that has some business owners running scared. A business owner’s reflexive response to unfavorable economic and political times is often to cut spending, become cautious about new initiatives, and generally slow things down.
As business coaches, we know what works in times like these because we’ve navigated them in our own business and emerged successfully and, of course, we’ve steered hundreds of business owners through them successfully.
Our advice to get through unfavorable economic and political times falls into 3 buckets…
First, if you haven’t already, create your planning documents. Look at what’s most important and determine what you want 2023 to look like. Use our Single Sheet Business Plan to forecast your longterm 10-year+ goals, your midterm 5-year goals, your 2023 goals, and then use our Quarterly Action Plan sheet to list the actions necessary to complete 1st quarter 2023 goals.
Once you have your goals outlined, do contingency planning. If interest rates decline, what will you do? If the housing market collapses? If the cost of your debt goes through the roof? Get your contingency plans outlined so you have a sense of how you’ll react in various scenarios.
So you’ve got your game plan and you also have your contingency plan. If nothing else, these two together allow you to have confidence that you know how you’ll react no matter what comes your way.
Our second piece of advice in uncertain times has been on our hearts for awhile now. It’s the need for leaders to have capacity to lead and engage their employees. It’s important to share those planning discussions with employees, to share what you hope to accomplish and to let them know that there’s a plan for unexpected events. Are they on board? Get their input. It’s so important to take your plan to the shop floor level. Too often we don’t take the time for those deep communications with our frontline people. They see the unfavorable economic and political news too. They’re also fearful, so help them feel more confident. It can’t help but increase loyalty, minimize turnover, and bolster morale.
Third and finally, do everything you can to make your business as healthy as possible. Turn your eye to strengthening financials, sales, your team, and your processes. Get rid of debt, put money aside for contingencies, if you’ve got employees on board who aren’t carrying their weight or who are causing trouble, let them go. If you’ve been reactive on sales, you need to proactive. If you’ve relied on new business to come naturally, it doesn’t when the market’s not in good shape. Identify anything unhealthy about your business. Everything needs to be as healthy as it can be to withstand any kind of negative business impact.
In summary, let’s not put our heads in the sand and roll up the sidewalks. Embrace 2023. in an unfavorable economic and political environment, get back to basics—do planning and contingency planning, involve your people, and get your business healthy.
Join our business coaches for a day, virtually or in person to create or shore up the longterm and shorterm plans for your business. The day includes the latest book discussion, work in small groups, and a nice hot lunch together.
Virtually – register here and we’ll send you the link
In person – Thur., Jan. 12, 9 – 3 pm
Holiday Inn Indianapolis Airport, 8555 Stansted Dr, Indianapolis, IN 46241
May your year find it’s ending in the hope of a strong beginning.