Alexander Graham Bell once famously said, “Before anything else, preparation is the key to success.” In the business world, particularly during times of struggle such as the one we’re in now, preparation is critical not only for getting through the difficulties, but also for positioning the company to perform well in the better days ahead.
ITR Economics is forecasting that the business cycle low point for US Industrial Production, our benchmark for the US economy, will occur in early 2021. If your business performs in line with the economy, you should be planning now with the goal of implementing your plans near that business cycle low.
We provide our clients with Management Objectives™ that help guide their decision-making through the various phases of their business cycle. Right now, many companies that correlate to the industrial economy are in Phase D, Recession. Some of the Management Objectives™ that we suggest are:
- Renegotiate long-term leases
- Consider capital equipment needs for the next cycle
- Lead with optimism, remembering that Phase D is temporary
- Perform due diligence on acquisitions while valuations are falling
- Develop programs for advertising, training, and marketing to implement in Phase A, Recovery
This list is by no means exhaustive and does not apply to every company in every industry. However, we hope it provides you with some ideas to contemplate in the months ahead as we approach the business cycle low. If you’d like to discuss some Management Objectives specific to your business, please reach out to us; we’re here to help. After all, as Benjamin Franklin once said, “By failing to prepare, you are preparing to fail.” We want to help you succeed.
Senior Business Advisor