The Ed Eppley Experience
The Ed Eppley Experience

Episode · 2 months ago

Are You Ready For The Recession?

ABOUT THIS EPISODE

If you think the last 24 months have been unusual, the next 12-14 months could be even harder to predict. Should you be cutting expenses? Should you be tightening up your supply chain? In this minicast I share what my clients are experiencing and doing to give your some additional perspective. Remember, one good thing about disruption of the status quo is that for many businesses, it creates significant opportunity.

Welcome to the ed Epley Experience mini log let. Professional management expert Ed Epley inspire you to take action on building a more sustainable, smart and healthy business. Hello everyone, it's time for another mini log business ed Epley, Thanks for joining me today. This topic is are you ready for the recession? In talking with my clients and friends and people in business that I network with, the issue is not so much about if they're going to be experiencing a recession. It's only when I have certain clients that are already in it, and then I have certain ones that know that they're not experienced it right now. They lag the economy, so they're not going to be in at this next six to maybe twelve months, but come they know their business is not going to be what it is today. So the question really is how ready are we and what are we gonna do to make sure that we are prepared.

One of my clients told me about an article that they read from Bain and Company. It's called the New Recession Playbook, and I'm looking at it as I speak with you today. It's written by Jason Heinrich, Simon Henderson, and Melissa Lee. It actually came out in July of this year, and there's a couple of things that I wanted to share with you because I think it's really helpful to have some kind of map to compare what you're doing against some benchmark, to think about if you've done enough of the right things to make sure your company or your team is in a position to be successful in these unusual times. The three summaries of the article are I'm going to quote from this. While companies race to adapt their strategies to deal with persisting inflation, they will also need to revise their playbooks for the anticipated recession, considering a host of complexities that will make this recession different. So number one, they're saying the recession that we're going to be experiencing, it will not be perhaps like the recession we saw during COVID or more importantly, back to...

...two thousand nine ten eleven, during the global financial crisis. Number Two, the highlight is our research has found that companies make more dramatic gains or losses during downturns than during stable periods. So there's chances for extraordinary gains or extraordinary losses. And that's probably most people focused on the ladder when in fact, there could be opportunities to really accelerate your business if you do the right things during this recession. And the third takeaway is among the moves that will help companies emerge stronger surgically restructuring costs before the downturn, diligently managing liquidity and the balance sheet, and staying focused on customers, and aggressively pursuing merger and acquisition opportunities. So I'm not gonna read a lot more from this article, but it is chock full of ideas and thoughts, plus a methodology to really determine where your business finds itself in this unusual or differ recession that we're probably going...

...to be experiencing, and that recognizing as honestly as you can where you currently are is probably very important to choosing than the right path to make yourself more resilient and being opportunistic in what this recession might lay out in front of you. One thought that I would share with you that I wanted to focus on is the importance of customer service right now, because what happens in downturns as you cut costs and as you maybe streamline the business, you know, reduce number of products and services that you might have had previously. You really have to think about what are you going to do to demonstrate your loyalty and focus to certain customers that you want to maintain during this downturn. So there's certainly gonna be more people knocking on your customers doors trying to sell their products or services during this recession than there would ever have been otherwise. Not that there wouldn't be increased competition, but it get even heightened. So you have to...

...have a strategy for what you're going to do to help your customers remain loyal to you during this recession. That's knocking on our door if it hasn't already come into your house. So that's it for today's mini log. Are you ready for the recession? And I'm suggesting that you get the new Recession Playbook from Bain and Company. It's a quick read. It's a back filled fund read that I think will give you more confidence about what you and your organization can be doing. Thanks for joining me, talk to you soon. Thanks for listening to the Ed Epley Mini Log. Visit www the Epley group dot com for resources, tips, Ed's latest blogs and a free assessment on where to improve your professional management skills,.

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