Recession-Proofing
What to consider when preparing your
business for an imminent recession
It’s an unprecedented time in our econ-
omy. According to the National Bureau
of Economic Research, as of July 2019,
the U.S. has officially surpassed the prior
historical record for the longest economic
expansion following an economic crisis.
While we’re all happy to ride this wave
of economic growth, many economists
and business leaders are actively warning
us not get too comfortable in our current
business operations.
The topic of “recession” is being dis-
cussed more frequently throughout the fi-
nancial industry. And even though no one
knows when it will hit, history shows that
it’s only a matter of time before it does.
Learning From The Past
Rea & Associates, like countless other
businesses, was hit hard by the 2008
economic recession. We lost a significant
amount of revenue and, in order to sur-
vive, we had to let go of a considerable
amount of workers, which resulted in a
talent gap within certain areas of the firm.
For a while now, our firm’s leaders have
conducted substantial research about the
need to prepare for an economic down-
turn. Subsequently, we have made a con-
scious effort to learn from our past and
the
develop a plan to meet a future recession
head-on. Planning ahead allows us to
think rationally without the added pres-
sure of being in an actual recession.
Developing A
Calculated Response
Our first step was to analyze the effects
the last recession had on our firm. Then,
we proceeded to dig through data to gain
a solid understanding of the issues we
faced in 2008. Armed with this knowl-
edge, we began to develop a tangible
plan of action which includes more than
40 business items leadership can evalu-
ate to help offset or minimize the pain
associated with recession. These items
range from how we bill our clients to the
types of employee benefits we offer. From
there, we identified which items should
take priority during the evaluation phase
and which ones can wait. Ultimately, the
work we’re doing now directly supports
our objective of being able to ensure that
we are in always in position to take care of
our clients and employees.
Getting Into The Weeds
We’re also working closely with our firm’s
specialty practice leaders to understand what
leading indicators in their respective industries
business of our business
This section of The Rea Report is dedicated to providing readers with a glimpse behind the curtain at
Rea & Associates. To read past articles in this series, visit www.reacpa.com/business-of-our-business.
12