Plain and Simple: Bright Business Insights Summer 2019 | Page 6

PLAN & PREPARE Are You Prepared For The Next Economic Recession? Recovering from The Great Recession wasn’t easy – and it certainly them satisfied will go a long way  to bolster your bottom line. wasn’t immediate – but, after much work and strategy, many business Compensate  fairly, consider what’s important to those  you hire, owners have once again hit their stride. And while the economy appears provide training and opportunities  for self-improvement, and let to be fine for the moment, we know that what goes up, will eventually your employees know they are valued. Work hard for them and they come down. For that reason, it’s important to consider the lessons we will work hard for you. Employees are your greatest expense and your learned a decade ago. most valuable asset. Treat them well and they will provide you with When the recession hit, different industries were affected in unique ways, but the reduced economic  growth that followed led to loss of income across the board. As a result, businesses were forced to learn how to do more with less, but in doing so, opportunities emerged. The crisis forced  businesses to cut costs, reevaluate systems, focus strategies and get back to the basics. It also prompted business owners to reconsider their company’s core values and align their endeavors accordingly. As we prepare for the next recession, consider implementing the lessons that were revealed during the last one. After all, as Spanish philosopher George Santayana once said, “Those who do not learn the greatest return. Lesson #4: Operate Your Business More Efficiently Businesses must operate more efficiently,  both from a staffing and operations  standpoint, to be successful in today’s  economy. Banks aren’t willing to take the risks they once were, and business lending (especially small business lending) has not fully recovered. Reduced access to capital in combination with the risk of “going it alone” has made entrepreneurship especially challenging. Regardless of the size of your organization, strategic planning has never been more important than it is today. Efficiency is the name of the game, and it’s imperative that companies position themselves to work smarter. history are doomed to repeat it.” Lesson #1: Employ ‘Jacks-Of-All-Trades’ Don’t forget to register for the 2019 The loss of capital during the recession meant many employers had Manufacturing Education Day event on to reduce the size of their workforce, which caused unemployment to Friday, October 4, 2019, to hear more surge to its highest rate since the Depression. These reductions in staff meant that more responsibility would have to fall on fewer about recession readiness from Ben. people, which forced many employees to learn new trades or find work elsewhere. Those who remained in their positions had to diversify their talents and find ways to work smarter, not harder. Companies should work to continue this practice to ensure their workforce is able to meet Lesson #5: Get Help From Business Advisors Using business advisors to ensure your business is on the right track multiple needs within the company. is critical. Surround yourself with a team of professionals, such as an Lesson #2: Attract Workers With Benefits and attain goals, and position you to take advantage of opportunities to Salaries continue to be lower than they were pre-recession; however, both employees and employers are discovering the value of a complete compensation package. Because of the extremely high costs of health care, employees are increasingly enticed by employers who are willing to offer better than average health care coverage. Many are willing to accept a much lower salary than they may have previously in order to obtain better coverage. In addition to health care benefits, perks such as job flexibility, stock options, opportunities for work/life balance and attorney, banker,  CPA and a financial planner, who can  help you set secure and utilize capital. Fortunately, the recession isn’t upon us yet, which means you have time to plan ahead and position your company to persevere. Just don’t wait too long to evaluate – or reevaluate – your business’s current operations and team. Reach out to me or your trusted Rea advisor to talk about what you can do today to protect your business from future hardship. personal development are also  important these days. Consider investing in a full benefits package in order to recruit and retain a talented workforce. Lesson #3: Hire Smarter And Keep Employees Happy Hire the right people the first time around  and keep them happily employed. A  good employee is a hot commodity, and  keeping Ben Froese, CPA Senior Manager 545 North Market Street Wooster, OH 44691 234. 249.3454 [email protected]