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Your economic outlook for 2022 / 2023 becomes as much a political statement as it is a purely economic one. While politicians are shifting the blame for the current Inflation, let us be reminded that we elect politicians to resolve problems and steer the economy to the benefit of its citizens. To place blame instead of working to solve problems is weak leadership. This is something every successful business leader knows.
There is a general consensus that Inflation, the War in the Ukraine, Global Supply Chain issues and other disruptors such as Oil and Gas, coupled with the lack of a cohesive Energy Strategy, are affecting the economy. Specifically with a 1.6% decrease reported in the First Quarter of 2022, and the Second Quarter shown at 0.7%. If you find yourself reading through a variety of these forecasts, more optimistic ones say that we will avoid a recession, but a still undergo a definite slowdown through 2023 and the beginning of 2024. More pessimistic forecasts see a recession starting (or having potentially already started) through 2022 and 2023 with hope for a rebound in 2024.
So what are the implications if you intend to sell your Company in the next 12 to 18 Months? If your Business is recession proof, or drives on recession, you can sell anytime, no worries.
Otherwise, if you find yourself with the energy to drive for another 2 years – here some recession tips:
- Review your strategy, focus on your strength and core products that make you money
- Control your expenses early, cut out all your extras and unnecessary items, so your profit Margins remain healthy
- Realign your staffing, innovate and invest in process improvement
- Service and Sales, outperform your competition
- Consider an acquisition as a strategic move
If for any reason, the exit plan and sale has to happen, we recommend doing it before it is too late.. If there is no more desire or energy to run the business, it will fall apart quickly! Even if the performance of your business is already in decline, there are options to sell, perhaps not at top level of the valuation, but better to cash out than to walk away with nothing at a later date.
If you wish to receive more details about GDP, please contact us here!
Listed below are a few more helpful links on the subject!
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