Welcome To The Recession Circus

We’ve been talking about the coming recession longer than the actual recession will likely last. Here’s the thing – recessions are notoriously difficult to predict, and sometimes we don’t know we’re in one until the National Bureau of Economic Research tells us two months after one started.

Recessions are a natural, unavoidable state of the economic cycle. So, rather than trying to plan for when the recession will hit, have a plan for what your company will do when it does actually arrive, and treat a recession as an opportunity for evolution and growth. 

Some jumping off points: 

1. Have the courage to face your company’s vulnerabilities and then shore them up during the good times. During recessions, complacent companies often stumble and even fall – don’t make your company one of them.
2. Know what your strengths are and be ready to build on them.
3. While your competitors are hoarding cash and running scared, develop new products and services or tweak existing ones, so that you’re ready to increase sales when the economy rebounds.
4. Work on the projects you might have been delaying – a robust Marketing plan, developing your team, doing strategic planning, or upping the customer experience – because everyone else will be cutting those things in a knee-jerk fashion.
5. Start a new business – recessions are notorious for the number of new businesses that are launched during them.

I don’t want to dismiss the difficulty and trauma that recessions bring. Like any other challenge – whether it’s a natural disaster or the disruption of a market – the companies who know how they will react when those challenges come are more likely to survive and even thrive.

To talk with me about ensuring your company is strong, schedule a quick meeting here.

P.S. Here are some fun facts about recessions in the US for those of you who just really want to know more.

1. Recessions in the US have lasted between two months and 18 months, with the average spanning about 10 months. 
2. The US has had 13 recessions since WWII, and our last one was  February-April 2020. 
3. Recession dating is complicated. 
4. Finally, the ridiculously strong labor market is messing with economists’ collective heads. The weird labor market has been stumping economists for a few years now, actually, because it’s not behaving the way it historically has.