Whether it’s the labor shortage, rising interest rates, inflation, or supply chain issues, today’s business leaders have been facing numerous problems so far this decade. However, the problems of today aren’t the same as those we will contend with in the 2030s, during the next Great Depression. Some leaders and executives will be wondering, “Where did the market go?” We are here to help you effectively prepare your business to succeed this decade and in the 2030s Great Depression.
Maintain the Right Attitude for Your Business to Succeed
At the height of the COVID pandemic, businesses had to drastically change their strategies. In fact, you likely heard the word “pivot” a lot – the idea was that companies had to “pivot” their business in order to prosper through the pandemic.
This idea will still be true through this decade and in the 2030s, as business leaders will need to be agile in their decision-making to make it through the second Great Depression. Businesses that will not change their strategies or decision-making processes will struggle to survive in the 2030s. Business owners and executives who are not willing to adapt to change – perhaps because they have always done certain things a certain way – will also struggle. Be open to change and willing to adapt on the fly to whatever comes your way.
Keep these key ideas in mind for your business in the 2030s:
- Spot opportunities in your industry and swiftly go after them.
- Know your competitive advantages and specifically those that will resonate well with clients or customers in an economic downturn.
- Look for competitors who are running short on cash and exploit this weakness by pushing prices down. In order to do this, your business will have to prepare a war chest of cash and available credit before 2030.
- Aggressive spending on efficiency gains now will allow you to enhance your margins today and keep them later, even with downside pricing pressure.
- Be quick to discover what is and isn’t working for your business.
- For example, quickly recognize which products are selling and which are not, so you can promptly shift your focus to what’s working.
- Fewer people will care about good/better/best products. Most will care about product affordability.
- Be ready to market and sell to millennials and Generation Z, unless you can cater to the aging baby boomer generation.
- Look for the new technologies that can really differentiate your business.
Should I Sell My Business Before the 2030s Great Depression?
With all the challenges business owners are facing today and will be facing during the Great Depression of the 2030s, some may decide that their most prudent option is to sell the business.
Whether you are looking to sell the business in the near future or years down the line, it is extremely important to have a succession plan in place and a realistic expectation as to multiples. Also, be careful of elongated payout plans, as the risk of diminished payment or non-payment increases as the years go by.
[ Further Reading: What Will the World Look Like After the 2030s Great Depression? ]
How Can ITR Economics Help My Business?
The 2020s will be a difficult time for many companies, and the 2030s Great Depression will bring challenges to many businesses. Leaders in the 2030s will not have the benefit of experience as they try to forge a path through the decade.
The best way to get started is by focusing on your budget planning for 2023. ITR’s data-driven approach toward budget planning and decision-making removes the emotion from the equation and focuses solely on the numbers.
ITR Economics’ EVP™ programs assist business leaders with their decision-making processes. We do more than just deliver reports – our team does the heavy lifting as we help guide you through the ups and downs of the economy. Our team of expert economists give you strategic advice for business planning. We identify positive and negative risks to your company, create a roadmap for you based on our accurate analysis and forecasting, identify key trends in your markets before your competitors do, and more, helping you gain the best competitive advantages.
Throughout the remainder of this decade, ITR’s new Custom Price Index service can also be the difference between profitability and losing money. Our Custom Price Index service offers key insights for developing an effective pricing strategy, guidance for protecting your margins, foresight into process and other input costs, and so much more to help your business remain profitable.
Whether you are focused on staying profitable through the 2020s or gearing up for the coming decade, there is a lot you can do now to prepare your business for the 2030s Great Depression. ITR Economics is by your side every step of the way to help your business remain successful moving forward.