The countdown to the end of the year 2013 is nearing its end, and while the theme of the season is merrymaking and thanksgiving, the entrepreneurs and business executives are also looking ahead to another year of opportunities and challenges.
From a global perspective, this year was a bumpy ride, particularly for countries that are part of the Eurozone. Then again, things on the homefront are still relatively risky, with the country having a tenuous grip on the ladder rungs as it climbs back up and beyond 2008 levels.
For business owners of all levels of experience and success, the coming year presents its own challenges, such as the Federal Reserve reducing its doling out of cheap money, and the ramifications that come with the higher interest rates. Less publicized, but just as significant is China’s declaration that it won’t be as inclined to purchase US treasury bonds.
Given the potentially tempestuous economic climate of the upcoming year, what measures and resolutions should the decision-makers take in order to steer their ships away from disaster, and perhaps catch the wind and sail towards financial prosperity?
The surge of economic recovery during the past two years might tempt businesses to let loose their purse strings and rest on their laurels. Given what’s in the horizon, that might just be the worst course to take. With the interest rates rising, money will be harder to come by, and every penny the company has must be focused towards revenue-generating endeavors.
Dialing back on the expenses is also encouraged, as opposed to blatant underspending or insufficient funding that might just lead to further ruin. It comes down to controlling the company’s overhead, making smarter decisions on acquiring equipment and other assets, and clamping down on unnecessaries.
For instance, if your construction company is on a rally and growing, it isn’t advisable to just stop spending and pulling your company’s proverbial head into its protective shell, nor is it wise to start gold-plating your nameplates, either. Smart, cost effective acquisition of the necessary equipment in order to keep operating is the the best course. If a project doesn’t need brand spanking new equipment to get it done, then opt for second-hand that will do the job just as well. Let your purchasing manager sweat a bit and find good deals in online auctions and marketplaces like Rock & Dirt Equipment.
You simply cannot rely on projections and predictions presented today. Everyday must be a day of information gathering and analysis, keeping you and your associates aware of news, events, and economic factors that affect your enterprise. This keeps you agile and ready to react or adjust your course, if needed.
This isn’t advice that encourages one to be an entirely reactive, jumpy, or skittish entity. Take everything with a grain of salt, as the airwaves and cyberspace are rife with misinformation spread by shysters who would take advantage of people that swallow those lies. Verify and analyze the data, check it with other sources of information, and then plan your course.
Bad news often drowns out the good, but this is no reason for you and your company to wallow in doom and gloom. Part of running a good business is having a positive outlook despite the obstacles that litter the highway to success. Roll with the punches, dodge what you can, and keep on swinging!
Stacey Thompson is a professional writer, marketer, entrepreneur, and a lover of weird little animals. She is based in San Diego, California, and maintains a blog with her best friends, Word Baristas.