August 3, 2022
Enquiring minds want to know: Is your business feeling the impact of inflation (and the possible recession)? What are you doing to mitigate the squeeze? We’ll publish your ideas and actions in a future feature.
In this week’s edition:
Holy schnikes — have you seen the lineup for Playbook 2022? We think it’s time for a speaker roll call:
It’s all happening September 21-22.
The best in the SMBiz coming together to drop winning plays, nuggets of wisdom, and indispensable advice for scaling your company — and guess what? It’s completely FREE.
All you have to do is save your spot today.
CLASS IS IN (RE)CESSION
Well, are we in a recession or not?
Officially? No. Even though we’ve seen two back-to-back quarters of economic contraction, the National Bureau of Economic Research (NBER) isn’t ready to call it — yet.
It’s looking dicey, though.
No doubt. And if we learned anything from our days with the Scouts, it’s that we should always be prepared (those knots have come in pretty clutch, too).
Of course, some industries fare better than others during a recession, and even those that aren’t traditionally resilient can survive. Let’s take a look at which industries may take the hardest hit and which ones will likely thrive.
LET IT FLOW… LET IT FLOW
Having cash on hand sounds like a good idea.
Supply chain disruptions, labor shortages, high inflation — these warning signs are popping up everywhere we look, and SMB owners should be prepared for worst-case scenarios. Having a strong cash flow can help cover unexpected expenses and certainly help ease your mind.
It feels like there’s a “but” coming.
One of the many downsides of inflation: rising interest rates. The Federal Reserve recently hiked interest rates to a range of 2.25% to 2.5%, with more increases potentially on their way. Meaning that you can’t afford to waffle about your financing options.
So, what are my options?
Going after traditional bank loans is a possibility, but the process can be challenging and worse — time-consuming. Thankfully, as a small business owner, you’ve got other options available:
SHARK WEEK ISN’T OVER
Every weekday, Trainual’s founder and CEO Chris Ronzio shares bite-sized nuggets of business leadership wisdom. On Fridays, hear from other business thought leaders across the globe — like the one and only Daymond John who released his secret to creating goals for long-term success (both personally and professionally). Don’t miss out — subscribe now!
PUT ME IN, COACH
We know where he is.
Most likely out sick with the COVID-19 BA.5 subvariant. Okay, we don’t have a crystal ball. But we do know that a startling 3.9M Americans couldn’t go into work between June 29 and July 11 because they were sick with the virus themselves, or caring for someone who had contracted it. On top of that, 4.8M workers have been using the vacation time they’ve been racking up over the past two years.
Perhaps. But either way, employees have been MIA. And with understaffing and turnover at discouraging highs, the struggle to keep operations running smoothly is oh-so-real.
How to keep moving forward:
With the proper plan in place, you can keep your business running like a well-oiled machine — even when people unexpectedly drop sick (or quit within 90 days like nearly one-third of new hires).
Work with your team to document how-to instructions for all major business processes so anyone can step in to help as needed. While you’re at it, create a detailed time off policy that leaves no room for interpretation.