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Business Advice

Preparing For the Ups and Downs Of a Recession

Moving forward during a period of an economic recession is certainly more of a challenge. But what's needed is an updated plan with awareness of the major external threats.

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Growth is likely to be a challenge but not impossible.

There was much optimism among business owners coming into 2022. Unfortunately, it didn’t last long.

Several factors are now making things a lot more challenging. For example…

Global events are pushing up energy prices to astronomical levels.

Ongoing supply-chain issues are making it difficult to source raw materials.

A scarcity of talent is causing problems regarding staffing and hiring.

Covid is still around and making trading more complex and challenging.

These hurdles might make you feel your goals are no longer attainable. But is this true? Growth is likely to be a challenge but not impossible.

Five steps for meeting your goals during a slowdown.

Moving forward during an economic recession is undoubtedly more of a challenge. But what’s needed is an updated plan with awareness of the significant external threats. Here are five steps to set you on the right path.

Revisit your goals and see how realistic they are 

Look at the numbers and make a call on whether they still make sense in the current business market. If necessary, update your goals and make them challenging. But, importantly, make goals attainable when cash and resources are in short supply.

Understand your financial position.

Now is the time to get the best possible understanding of your financial position. Take a deep dive into your finances and see how you’re tracking against your budgets and targets. How is your cash flow looking? Do you have enough working capital to fund your growth? If additional funding is needed, where could it come from?

Related Insight: Key Reports To Focus On Now In Your Business

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Decide if you have the right people.

Do you have the right team in place? Whatever your key goals, you need talented people on board who share your core aims for the business. Consider whether you have the unit you need or if there’s a pressing need to hire new people. And consider if artificial intelligence (AI) and automation could fill some of the resourcing gaps and help you scale up.

Assess the current industry situation.

You can’t change the significant external threats in your industry. But you can do your homework and find out what the immediate threats will be. Are there supply chain issues? Are prices going sky-high? Get up to speed and look for ways to minimise the impact and rise to the top of the crop.

Update your plan

Once you’ve reviewed your numbers, goals, and strategy, you will likely need an updated business plan. Factor in the threats and set meaningful goals, but give your company a realistic target during a global slowdown. Successful small steps towards a goal are better than one giant leap, where you may land flat on your face.

Talk to our specialist business and growth advisors today about your goal-setting for this year and beyond.

The sooner you start revisiting your goals and business plan, the better prepared your business will be for the ups and downs of a recession. Talk to us about your financial position, core strategy, and concerns about the next six to twelve months.

We’ll help you set practical, attainable goals to push your business forward.

Contact Clout Advisory today at 1300 886 006 or email us at coffs@cloutadvisory.com.au to start running your business like a well-oiled machine.

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